The American Institute of CPAs (AICPA) is calling for additional relief for taxpayers who are still financially hurting due to the pandemic.
The professional body sent a letter to the Department of the Treasury and the Internal Revenue Service (IRS) requesting urgent and targeted relief.
AICPA recommends that the government provides taxpayers with targeted relief from both the underpayment of estimated tax penalty and the late payment penalty for the 2020 tax year, and offers a reasonable cause waiver without impacting the taxpayer’s eligibility for FTA in future tax years.
Chris Hesse, chair of the Tax Executive Committee, said: “A fair and equitable tax administration system should help all taxpayers meet their tax obligations, regardless of the simplicity or complexity needed to meet their tax obligations.
“To lessen the burdens of the unprecedented challenges created by the coronavirus for everyone in the tax system, including the IRS, further penalty relief measures are needed.”