AICPA voices support for Tax Deadline Simplification Act
In a letter to members of the House of Representatives, the American Institute of CPAs (AICPA) expressed its support of H.R. 3708, the Tax Deadline Simplification Act. In the letter, the AICPA commends Representatives Debra Lesko (R-AZ) and Brad Schneider (D-IL) for their efforts to simplify the quarterly installments for estimated income tax payments by individuals.
Currently, small business owners and individuals are required to pay quarterly estimated tax payments April 15, June 15, Sept. 15 and Jan. 15. The AICPA notes that the spacing between these dates does not tie to traditional quarters, which can cause confusion for many individuals, including self-employed individuals, and create challenges to compute and pay timely.
The AICPA supports altering the due dates for estimated tax payments, stressing that changing the June 15 and Sept. 15 dates to July 15 and Oct. 15, respectively, would space the dates evenly three months apart and more closely tie to the normal quarter date, which is traditionally 15 days after the quarter end. This change will make it easier for taxpayers to meet their tax obligations in a timely manner.
Peter Mills, Senior Manager for Tax Policy & Advocacy with the AICPA, says as it continue to look for ways to simplify and improve tax administration in a constantly-changing environment, the AICPA believes that this simple adjustment will be a benefit to taxpayers, including those who are relatively new to filing and paying quarterly estimated taxes.
“Aligning the dates with calendar quarters will help to facilitate greater and more timely tax compliance,” Mills says.