AICPA comments on proposed tax legislation, expresses deep concern over certain provisions.

• Position: Tax info

The AICPA sent Congress a comment letter on several revenue provisions contained in S. 2020, the Tax Relief Act of 2005. Our comments related specifically to the bill's Sec. 501, Understatement of taxpayer's liability by income tax return preparer; Sec. 511. Clarification of economic substance doctrine: and Sec. 523, Partial payments required with submission of offers-in-compromise.

The AICPA has a clear position on abusive tax transactions--they should be eradicated. However, the Institute believes Sec. 501 and Sec. 511 are counterproductive, and strongly supported their elimination in conference. Doing so would still allow tax administrators to move forward productively to curb abuses while retaining taxpayers' respect for the tax system. The AICPA said it firmly believes Sec. 501 and Sec. 511 would have long-term, negative effects on both...