In a recent letter to the IRS and Treasury, the AICPA made recommendations to simplify the tax reporting requirements for partnerships and S corporations (collectively, passthrough entities, or PTEs).
The suggestions include recommendations to help alleviate time compression constraints currently impacting the ability of tax practitioners to prepare complete and accurate returns for PTEs, specifically those with tiered structures.
The AICPA’s letter recommends that Treasury and the IRS implement a comprehensive and proactive vetting approach to developing, revising and evaluating PTE reporting requirements to ensure optimal efficiency, simplicity and relevancy. See the recommendations.