A letter from the AICPA and CPA societies in 53 states and jurisdictions criticizes the provision in the House version of the budget bill that would eliminate the state and local tax deduction for certain passthrough entities.
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Tax
AICPA publishes additional resources in push to preserve PTET SALT deduction
The passthrough entity tax/state and local tax deduction remains a priority for the AICPA. The budget bill now being considered by the Senate does not allow certain service-based businesses to deduct state and local taxes.
Simplified method to determine corporate AMT applicable status issued
A notice issued by the IRS with interim guidance for the application of the corporate alternative minimum tax offers an optional simplified method for determining applicable corporation status under Sec. 59(k).
Funds withdrawn from jail food money account were a loan, not embezzlement income
An unauthorized loan was not includible in the taxpayer’s income; however, expenses incurred in connection with her employment as a county sheriff were not deductible.
Business networking organization denied tax-exempt status
The corporation primarily facilitates referrals among its members, a business activity, the IRS determined.
IRS did not concede taxpayer’s self-employment tax liability
A Social Security Administration letter advising of a reduction of his self-employment earnings record and an IRS refund were not concessions of liability for self-employment tax.
Form 1065: Pay attention or pay up
Along with the changes brought about by the Bipartisan Budget Act of 2015, the IRS’s focus on partnership returns appears to be undergoing a renaissance. Understand how the environment is changing and how you can be prepared.
IRS hotline questions resolved faster in 2025; concern grows about agency’s future
An annual survey of AICPA members about IRS service showed the majority of respondents are concerned that political distractions will affect agency funding and administration in the future.
AICPA recommends changes to prop. regs. on PTEP, related basis adjustments
The recommendations, sent Tuesday in a letter to Treasury and the IRS, include that the IRS expressly allow taxpayers to rely on proposed regulations until they are final.
House passes budget reconciliation bill with changes to tax provisions
Early Thursday morning, the House of Representatives passed the One Big Beautiful Bill Act by one vote. The bill had been amended by the Rules Committee, and it now goes to the Senate for consideration.
Why the PTET SALT deduction is the AICPA’s ‘No. 1 priority’
An AICPA tax leader updates listeners on key points of the tax portion of the House budget bill. She also details some of the AICPA’s sticking points and potential “wins” — and explains why IRS service may soon decline. Listen to the podcast episode or read the Q&A.
AICPA: Contingent fee provision in tax bill would help unscrupulous tax preparers
In a letter to congressional committee leaders, the AICPA said Congress should strike language from the tax bill that bars Treasury from regulating contingent fees.
Reconciliation bill clears committee on second try
Sunday revote came after Republican fiscal hawks initially joined Democrats to sink the bill, which includes tax provisions approved by the House Ways and Means Committee last week.
Ways and Means approves proposed TCJA extensions and tax changes
The bill would make key portions of the TCJA permanent and create a new “senior bonus” deduction, among its many provisions. An AICPA statement said it is “deeply troubled” by the plan to curtail use of passthroughs to avoid SALT cap. The bill now heads to the House Budget Committee.
IRS reduces user fee for estate tax closing letters
The receipt of an estate tax closing letter generally indicates that the estate tax return’s IRS examination is closed. Final and proposed regulations lowered the fee by $11.
The ‘robot uprising’ and you: A CPA leader’s view on harnessing AI
An expert on artificial intelligence explains why the profession is well suited to deal with fast-moving technological changes despite saying, “Nobody can actually fully keep up.” Listen to the podcast episode or read the Q&A.
AICPA endorses some Ways and Means tax provisions, signals concern for others
One item is a “longstanding priority for the AICPA and the tax profession,” a news release said. The AICPA cited the “potential detrimental impact” of other provisions.
Are you aware of this May 30, 2025, filing deadline?
If you have a client that owns at least 10% of a foreign enterprise, they must file forms for the BE-10 survey.
Revenue agents who conduct audits lead IRS job losses
The IRS lost 11% of its staff in the first three months of 2025, with revenue agents who conduct audits accounting for the largest percentage of those who left, the Treasury Inspector General for Tax Administration said in a report.
AICPA makes recommendation for updated Form 8971 instructions
In a letter to the IRS, the AICPA recommended that the agency provide further guidance in two areas of new instructions for Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent.
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