AICPA Praises Tax Deadline Modification Bill

AICPA Backs Bipartisan Tax Deadline Simplification Legislation

Washington, D.C. (June 30, 2021) — The American Institute of CPAs (AICPA) is voicing strong support for H.R. 4214, the Tax Deadline Simplification Act, cosponsored and introduced by Representatives Debra Lesko (R-AZ) and Bradley Schneider (D-IL). This bipartisan legislation will simplify the quarterly installments for estimated income tax payments by individuals, changing the due dates for the second and third quarter estimated federal income tax payments to have all quarterly payments due 15 days after the end of a quarter.

The AICPA has worked tirelessly over the last several months to secure relief for taxpayers who are subject to quarterly estimated tax payments. Currently, quarterly estimated payments for individuals are due on the 15th day of April, June, September and January, which does not align with a standard quarter and can be confusing to the growing number of self-employed individuals (and others). This creates unnecessary challenges for taxpayers to compute and submit timely payments.

“We appreciate and support Representatives Lesko and Schneider in their efforts to make it easier for taxpayers to meet their tax obligations,” said AICPA vice president of taxation, Edward Karl, CPA, CGMA. “The current structure can be confusing and can easily result in unintended mistakes — changing the dates as proposed in this bill is a commonsense approach that will allow for the flow of more accurate information to taxpayers.”

About the American Institute of CPAs

The American Institute of CPAs^® (AICPA^®) is the world's largest member association representing the CPA profession, with more than 428,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.

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BACKGROUND:

• March 18, 2021: The AICPA released a statement in response to testimony provided by Commissioner Rettig before the House Ways & Means Oversight Subcommittee.

• March 25, 2021: The AICPA and the NAEA sent a letter to the Department of the Treasury and the IRS expressing disappointment in the announcement to extend the filing deadline — but not the estimated payment deadline — to May 17^th, which excludes many taxpayers and arbitrarily discriminates against different types of taxpayers.

• April 1, 2021: Sixty Members of Congress, led by Representative Lloyd Smucker, sent a letter to IRS Commissioner Charles Rettig calling for Treasury and the IRS to reconcile the deadline postponement to include quarterly estimated payments.

• April 9, 2021: The AICPA released a statement and recommendations for taxpayers and tax practitioners on first quarter (Q1) estimated payments and Form 709 gift tax return extensions ahead of the April 15^th deadline.

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June 30, 2021

The Honorable Debra K. Lesko
1214 Longworth, House Office Building
Washington, DC 20515

The Honorable Bradley S. Schneider
300 Cannon House Office Building
Washington, DC 20515

Re: H.R. 4214, The Tax Deadline Simplification Act

Dear Congresswoman Lesko and Congressman Schneider:

The American Institute of CPAs (AICPA) commends your efforts to simplify the quarterly installments for estimated income tax payments by individuals. Specifically, we support changing the due dates for the second and third quarter estimated federal income tax payments to have all quarterly payments due 15 days after the end of the quarter.

Currently, quarterly estimated tax payments for individuals (including small business owners) are due April 15, June 15, September 15 and January 15. The spacing between these dates does not tie to normal quarters which can be confusing to self-employed individuals (and others) and even challenging to compute and timely pay.

Changing the June 15 date to July 15 and the September date to October 15 would consistently schedule the dates to three months apart and tie to the normal quarter date (15 days after the quarter end) making it easier for taxpayers to meet their tax obligations in a timely matter.

The AICPA is the world's largest member association representing the CPA profession, with more than 431,000 members in the United States and worldwide, and a history of serving the public interest since 1887. Our members advise clients on federal, state and international tax matters and prepare income and other tax returns for millions of Americans. Our members provide services to individuals, not-for-profit organizations, small and medium-sized businesses, as well as America's largest businesses.

We appreciate your consideration of these comments and welcome the opportunity to discuss these issues further. If you have any questions, please feel free to contact Melanie Lauridsen, Senior Manager — AICPA Tax Policy & Advocacy, at (202) 434-9235 or Melanie.Lauridsen@aicpa-cima.com; or me at (601) 326-7119 or JanLewis@HaddoxReid.com.

Sincerely,

Jan F. Lewis, CPA
Chair, AICPA Tax Executive Committee
American Institute of CPAs
Washington, DC