The American Institute of Certified Public Accountants (AICPA) has submitted written testimony for the record of the Senate Finance Committee’s April 12, 2007 hearing to examine tax administration and tax gap initiatives. The AICPA laid out its opposition to a particular taxpayer confidentiality provision it said would introduce “unnecessary burden and complexity that is at odds with well established modern business practices.”
The provision was included in S. 1321 from the last Congress that was crafted by the Senate Finance Committee.
The AICPA said it is “concerned the proposal has the potential to actually undermine the range and quality of professional tax services available to many taxpayers.”
In its testimony, the AICPA also commented on other provisions in S. 1321 regarding the understatement of taxpayer’s liability by tax return preparers, the penalty for aiding and abetting the understatement of tax liability, and the doubling of certain penalties, fines, and interest on underpayments relating to certain offshore financial arrangements.