The American Institute of CPAs (AICPA) said several areas of the Tax Cuts and Jobs Act (TCJA) need technical corrections, which it outlined in a letter to the House Ways and Means and Senate Finance committees.
Among them, AICPA recommends a technical correction to clarify the effective date language of TCJA Sections 13302(c) and (e), and its applicability to fiscal year filers. Specifically, Congress should change the wording to “taxable years beginning after December 31, 2017” instead of “taxable years ending after December 31, 2017.”
“A technical correction to the wording of the effective date would provide fairness to fiscal year taxpayers that have incurred an NOL during 2017 prior to the enactment date,” AICPA stated in its letter. “The current statutory language particularly hurts small fiscal year taxpayers that have little chance of leveling out income with large swings in their taxable income even though the 2017 calendar year taxpayers can continue using losses generated during the same time frame.”