CPA Resources
CPA Resources

AICPA report outlines need for tax penalty reform

WASHINGTON, Aug. 30, 2009 -- The American Institute of  CPAs has submitted its “Report on Civil Tax Penalties: The Need for Reform” to the congressional tax-writing committees and officials at Treasury and the IRS.

In the report, the AICPA raises concerns regarding the current state of civil tax penalties and comments that, in the 20 years since the civil tax penalty system was last overhauled, numerous penalty provisions have been enacted that are not directed toward, and do not achieve, the core goal of encouraging voluntary compliance.

The AICPA urges Congress, Treasury and the Internal Revenue Service to work with taxpayers, practitioners, professional organizations, and other stakeholders in developing a systematic and thoughtful approach to the reform of civil tax penalties and penalty administration.

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