octobernovember2022 - 34

AICPA NEWS
AICPA News is a round-up of recent
announcements from the institute.
AICPA Comments on
Tax Provisions in Senate
Reconciliation Legislation
The AICPA submitted a letter to Senate Finance Committee and
House Ways and Means Committee leadership regarding tax policy
issues in the Senate reconciliation legislation released July 27 (the
Inflation Reduction Act of 2022). The letter highlights some of the key
issues the AICPA has identified, including with regard to:
■ Sec. 10101. Corporate Alternative Minimum Tax
■ Sec. 10201. Modification of Rules for Partnership Interests Held in
Connection with the Performance of Services (Carried Interest)
■ Sec. 10301. Enhancement of Internal Revenue Service Resources
The AICPA believes that the Corporate Alternative Minimum Tax
proposal contained in Section 10101 violates numerous elements
of good tax policy and may result in unintended consequences that
must be carefully considered. However, if the tax is enacted, the
AICPA recommends that the effective date is delayed until after the
later of taxable years beginning after December 31, 2023, or the date
Treasury issues proposed regulations to provide taxpayers with the
needed time to fully analyze and comply.
While the AICPA is not taking a position on the adoption of
the modification of the carried interest rules in Section 10201,
should Congress move forward with the carried interest changes,
we suggest several technical clarifications or modifications. The
suggested changes are outlined in the letter. In its letter, the AICPA
urges Congress to commit, in a bipartisan manner, to determine
the appropriate level of service necessary for the IRS and provide
adequate resources for the agency to meet those goals - either
as part of a reconciliation package or in a separate vehicle. ■
AICPA & CIMA RECOGNIZE THREE
CPAS FOR WORK IN GOVERNMENT
The AICPA and CIMA have presented
Elaine M. Howle, CPA,
of El Dorado Hills, Calif., with its
2022 Outstanding CPA in Government
Career Contribution
Award, honoring her dedication
to the accounting profession.
The AICPA & CIMA also
presented their 2022 Outstanding
CPA in Government
Impact Award at the state and
local level to:
Joseph
AICPA ADDRESSES LEVEL OF SERVICE
WITH PRACTITIONER PHONE LINE
The AICPA submitted a letter to the
Internal Revenue Service (IRS) addressing
the plummeting level of service for
the Practitioner Priority Service (PPS)
telephone line and providing recommendations
for improvement. Despite recent
efforts by the IRS to ease the burden
the backlog has caused for taxpayers
and practitioners, the AICPA notes that
service levels for the practitioner priority
service phone line had been in continuous
decline for several years.
The AICPA submitted comments
on the specific PPS line challenges and
provided suggestions for improving the
experience for tax practitioners and IRS
customer service representatives in the
following areas:
■ Power of Attorney (POA) Issues
■ Transcripts
■ Accounts Management versus Automated
Collection System
■ General Recommendations
AICPA strongly urges the IRS to
consider implementing these recommendations
as part of their plan to
reduce the backlog and improve services
and believe that doing so will have a
significant positive impact on services
provided by the IRS. ■
AICPA SUBMITS COMMENTS RELATED
TO REMOTE WORK
The American Institute of CPAs (AICPA)
submitted comments to the Department
of the Treasury and the Internal
Revenue Service (IRS) requesting updated
guidance in several key areas related to
employees working remotely and offering
recommendations regarding the taxation
of payments related to remote work.
The AICPAs comments and recomR.
Morrissette,
CPA, of Bismarck, N.D., with
the 2022 Outstanding CPA in
Government Impact Award at
the state level.
Charles W. Warren, CPA,
CGMA, of Fort Smith, Ark., with
the 2022 Outstanding CPA in
Government Impact Award at
the local level. ■
mendations focus on the following areas:
■ Principal Place of Business
■Work Arrangements: Employer-Location
Based, Remote, and Hybrid Definitions of
Employer Location-Based, Remote and
Hybrid Work Arrangements to Define
Employee's Tax Home
■ Facts and Circumstances Test for
use in the Classification of a Remote
Employee and Defining a Hybrid
Employee's Tax Home
■ Safe Harbor for Use in Defining a
34 OCTOBER/NOVEMBER 2022 ■ www.CPAPracticeAdvisor.com
Remote Worker
■ Employee-Employer Arrangement
■ Pursuit of a Trade or Business
■ Non-Travel Expenses Incurred While
Working Remotely
■ Examples
As a result of the pandemic, many companies
are redefining their respective work
structures - while some are moving to fully
remote, others are offering their employees
a hybrid structure. Many employees prefer
the work-from-home format, particularly as
it relates to commuting. Additionally, many
employers recognize the increased productivity
and note the value of decreased
office maintenance costs. Many revenue
rulings and interpretations of case law
are outdated, which creates unnecessary
confusion and stress. ■
http://www.CPAPracticeAdvisor.com
octobernovember2022

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