The AICPA voices opinions on abusive tax shelters, foreign earned income exclusions proposed in "JOBS" Act.

• Position: Legislation

In early July the AICPA provided comments to Congress regarding visions in the proposed dumpstart Our Business Strength (JOBS) Act (S. 1637). The provisions relate to abusive tax shelters and foreign earned income and housing exclusions.

Our letter on curbing abusive tax shelters expressed the AICPA's opposition to the approach included in S. 1637 while stating our support for replacement legislation proposed in the House of Representatives. The AICPA said, "[We] convey our general support for the House approach to curtailing tax shelters in the FSC/ETI replacement legislation that will shortly be under consideration in conference. Despite some remaining technical concerns [with] H.R. 4520, the American Jobs Creation Act of 2004, we strongly support its adoption and believe it will provide an important step in curtailing abusive tax transactions."

We withheld support from the Senate bill for two primary reasons: its codification of the economic substance doctrine and the raising of the tax return standard (for both taxpayers and preparers) to "more likely than not" for all tax return positions. The letter said, "We believe these provisions are...