Senate Finance Committee advances tax bill backed by AICPA

The Senate Finance Committee on Thursday approved the Taxpayer Assistance and Service (TAS) Act, which the AICPA said will improve tax administration and reduce burdens on both taxpayers and preparers.

“The TAS Act represents an important step towards creating a more effective and taxpayer-focused tax administration system,” Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said in a news release. “This bill includes provisions that will strengthen taxpayer support while also helping ensure paid tax preparers meet ethical and professional standards that reinforce Americans’ trust in our profession and in the tax system.”

The act, introduced by Senate Finance Committee Chair Mike Crapo, R-Idaho, and ranking committee member Ron Wyden, D-Ore., addresses several provisions that the AICPA supports, including:

• Sec. 101, Digitization of Tax Returns and Correspondence;
• Sec. 102, Establishment of Dashboard to Inform Taxpayers of Backlogs and Wait Times;
• Sec. 103, Expansion of Electronic Access to Information about Returns and Refunds;
• Sec. 104, Expansion of Callback Technology;
• Sec. 105, Expansion of Online Accounts;
• Sec. 108, Individuals Facing Economic Hardships Informed of Collection Alternatives;
• Sec. 405, Operations to Assist Taxpayers Experiencing Hardships During Lapse in Appropriation;
• Sec. 504, Authority to Deny, Revoke, or Suspend Preparer Tax Identification Numbers; and
• Sec. 902, Extension of Mailbox Rule to Electronic Submissions and Payments.

Lauridsen mentioned the Simplify Automatic Filing Extensions (SAFE) Act as one of the provisions that the AICPA supports but is not included in the bill. It would simplify filing extensions, reducing the need for complex estimates.

The AICPA “will continue to work with members of Congress to support common-sense solutions and remain hopeful that these provisions will be addressed in future legislation,” Lauridsen said.

Crapo, in prepared remarks, said the bill has drawn support from current and former national taxpayer advocates, as well as many practitioners.  “Such broad consensus signals we are on the right path to better tax administration,” he said.

In a statement after the vote, Wyden said the committee “took an important step towards common sense reforms that will protect taxpayers and modernize the IRS. I look forward to getting them signed into law so American taxpayers are no longer scammed by shady tax prep schemes and will get help filing their taxes. This marks a key step towards restoring fairness to the tax system.”

National Taxpayer Advocate Erin Collins said in a news release that the TAS Act “would go a long way toward better protecting taxpayer rights, reducing unnecessary burdens, and improving the tax administration process for millions of taxpayers. Each of these measures addresses a distinct issue. Together, they make far-reaching practical and common-sense improvements that would help the IRS better serve taxpayers.”

The bill, approved by a 26-1 committee vote, moves to the full Senate for consideration.

On March 31, the House of Representatives approved H.R. 1152, the Electronic Filing and Payment Fairness Act, that would extend the “mailbox rule” to electronically submitted tax returns and payments to allow the IRS to record payments and documents submitted electronically on the date they are sent instead of when they are received or reviewed at a later date.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.