Congress should get rid of “antiquated” tax provisions that have acted as barriers to small businesses during the coronavirus pandemic, according to the world’s largest trade association for accountants.
The American Institute of CPAs in a Thursday letter to House and Senate leaders said changes should include: repealing the alternative minimum tax for individuals, trusts, and estates; the removal of “syndicate rules” to allow partnerships and LLCs to deduct losses without fear of triggering tax shelter limitations; and replacing temporary tax provisions, known as extenders, with permanent policy.
- “The tax system is typically ‘behind’ the current environment, perpetually catching-up,” the AICPA said. “The pandemic highlighted the antiquated nature of some of these provisions and modernizing these for small businesses ensures that the system is proactive in responding to future events.”
- The group also proposed technical corrections to the stimulus package (Public Law 116-136), known as the CARES Act, and recommended additional legislative changes, including a tax credit to encourage small businesses to invest in home office technology for their employees and new due dates for estimated tax payments owed by certain taxpayers, such as those that are self-employed.