At a recent hearing held by the House Ways and Means Subcommittee on Oversight, the American Institute of Certified Public Accountants (AICPA) made recommendations on how to improve federal tax administration.
Following the enactment of the tax reform bill, the Tax Cuts and Jobs Act, AICPA officials said in their testimony that taxpayers face a period of uncertainty.
“It is critical that the IRS (Internal Revenue Service) is a modern-functioning agency that will issue immediate guidance on priority issues, focus on the needs of taxpayers and tax preparers, and implement the legislation in an effective and efficient manner,” AICPA said in a submitted statement.
AICPA officials said at the hearing that proper governance and oversight, proficient taxpayer services and a practitioner-focused services unit, are all necessary elements of an effective tax administration system. In addition, the regulation of tax return preparers and the limited use of contingency fees are extremely critical to promote voluntary compliance and protect the rights of taxpayers.
Further, AICPA stated that following these recommendations will help strengthen tax administration and improve compliance programs while protecting the public.
AICPA has more than 418,000 members in 143 countries, making it the largest associations for CPAs in the world. It sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments.