The American Institute of Certified Public Accountants (AICPA) has urged the US Congress “to immediately address the fifty-seven tax provisions that expired at the end of 2013 and the six tax provisions that expire at the end of 2014.”
Congress began consideration of extenders legislation earlier this year, the AICPA wrote in its September 15 letter, but “America’s businesses and individuals are still faced with uncertainty in planning and compliance as we quickly approach the fourth quarter.” It pointed out that House and Senate action on the tax extenders is necessary as soon as possible “to avoid further distortions in financial reporting, prevent unnecessary delays in the tax filing season, and end all of the needless uncertainty.”
Taxpayers and tax practitioners need certainty to perform any long-term tax, cash-flow or financial planning and reporting. If Congress does not act soon, the AICPA stated it is concerned about the following consequences:
- The impact on a company’s financial accounting and reporting;
- The increase in complexity and administrative burden for taxpayers and the Internal Revenue Service (IRS);
- The adverse impact on small businesses and, ultimately, jobs and growth; and
- The effect on economic decisions and tax payments.
