The American Institute of CPAs (AICPA) has submitted recommendations about how to improve federal tax administration in its testimony for the hearing record of the House Ways and Means Subcommittee on Oversight’s January 30 hearing entitled “Legislation to Improve Tax Administration.”
“As taxpayers face a period of uncertainty regarding the sweeping tax law changes” following enactment of Public Law No. 115-97, commonly known as the Tax Cuts and Jobs Act, the AICPA wrote, “it is critical that the IRS 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.”
The AICPA stated that its recommendations “will strengthen tax administration and improve compliance programs while protecting the public.” Proper governance and oversight, proficient taxpayer services and a practitioner-focused services unit, are all elements of an effective tax administration system, according to the AICPA. In addition, the regulation of tax return preparers and the limited use of contingency fees are necessary to promote voluntary compliance and protect taxpayer rights.