The American Institute of CPAs (AICPA) has called for “greater certainty” for taxpayers, tax practitioners, underpayment and late payment penalty relief, which will provide greater assistance to those affected by the Covid-19 pandemic.
In two recent letters to the Department of the Treasury and the Internal Revenue Service (IRS), the AICPA urged both services to provide taxpayers with more “certainty and stability” by announcing any pending tax filing and payment deadline postponements by March 1 2021.
Additionally, the institute revealed it is calling for the treasury and the IRS to provide underpayment and late payment “penalty relief, delay collection activities” and expand the temporary e-signature relief to the millions of taxpayers affected.
In a letter sent earlier this month, the AICPA called attention to the “hardship” that millions of taxpayers and tax practitioners are reportedly facing while making “good faith efforts” to comply with their tax obligations.
The AICPA has also recommended both services provide taxpayers “relief” from underpayment penalties and relief from late payment penalties for the 2020 taxable year.
Furthermore, the institute said that taxpayers should receive relief if taxpayers paid “at least 70%” of the tax due for the current year, or paid 70% (90% if adjusted gross income exceeds $150,000) of the amount of tax shown on their U.S. income tax return for the prior year.
Edward Karl, VP of Taxation, AICPA, said: “We understand the internal challenges the IRS faces, however providing certainty and relief for those affected by this pandemic eases the strain on taxpayers and on the IRS while we all work to get back to normal operations.”