AICPA Backs Bipartisan Tax Deadline Simplification Legislation
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AICPA Backs Bipartisan Tax Deadline Simplification Legislation

2 months ago · 1 min read

Washington, D.C. (June 30, 2021) – The American Institute of CPAs (AICPA) is voicing strong support for H.R. 4214, the Tax Deadline Simplification Act, cosponsored and introduced by Representatives Debra Lesko (R-AZ) and Bradley Schneider (D-IL). This bipartisan legislation will simplify the quarterly installments for estimated income tax payments by individuals, changing the due dates for the second and third quarter estimated federal income tax payments to have all quarterly payments due 15 days after the end of a quarter.

The AICPA has worked tirelessly over the last several months to secure relief for taxpayers who are subject to quarterly estimated tax payments. Currently, quarterly estimated payments for individuals are due on the 15th day of April, June, September and January, which does not align with a standard quarter and can be confusing to the growing number of self-employed individuals (and others). This creates unnecessary challenges for taxpayers to compute and submit timely payments.

“We appreciate and support Representatives Lesko and Schneider in their efforts to make it easier for taxpayers to meet their tax obligations,” said AICPA vice president of taxation, Edward Karl, CPA, CGMA. “The current structure can be confusing and can easily result in unintended mistakes – changing the dates as proposed in this bill is a commonsense approach that will allow for the flow of more accurate information to taxpayers.”

BACKGROUND:

  • March 18, 2021: The AICPA released a statement in response to testimony provided by Commissioner Rettig before the House Ways & Means Oversight Subcommittee.

  • March 25, 2021: The AICPA and the NAEA sent a letter to the Department of the Treasury and the IRS expressing disappointment in the announcement to extend the filing deadline – but not the estimated payment deadline – to May 17th, which excludes many taxpayers and arbitrarily discriminates against different types of taxpayers.

  • April 1, 2021: Sixty Members of Congress, led by Representative Lloyd Smucker, sent a letter to IRS Commissioner Charles Rettig calling for Treasury and the IRS to reconcile the deadline postponement to include quarterly estimated payments.

  • April 9, 2021: The AICPA released a statement and recommendations for taxpayers and tax practitioners on first quarter (Q1) estimated payments and Form 709 gift tax return extensions ahead of the April 15th deadline.


Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com

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