AICPA sent a letter to Congressional leadership in the Senate Finance and House Ways & Means Committees. In the letter, the AICPA put a spotlight on several legislative proposals that are directly related to potential changes to the tax rules.
The 2025 tax priorities underlined in the letter include many proposals contained in the AICPA’s 2025 Compendium of Tax Legislative Proposals—Simplification and Technical Proposals. The compendium comprises 69 recommended simplification of and technical changes to internal Revenue Code provisions.
“Each new Congress, the AICPA sends Congress our recommendations for simple fixes to technical issues they can address as they draft tax legislation,” notes AICPA vice president of Tax Policy and Advocacy, Melanie Lauridsen. “Our tax legislation priorities include recommended proposals that would reduce uncertainty and complexity for taxpayers, improve simplification within the tax system, and transform how taxpayers and tax practitioners interact with the IRS, while our 2025 Compendium addresses significant issues affecting businesses, taxpayers and their accounting representative.”
The AICPA’s tax priorities include the following:
• Include the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1151 / S. 756), letting 529 plan funds be utilized for post-secondary credential expenses.
• Offer permanent and consistent tax relief to individuals and businesses impacted by natural disasters including the Filing Relief for Natural Disasters Act (H.R. 517 / S. 132).
• Retain the qualified business income (QBI) deduction and expand the QBI deduction limit phase-in range.
• Extend the section 174 research and experimental costs expensing and other related expired/expiring Tax Cuts and Jobs Act of 2017 (TCJA) provisions.
• Preserve the pre-TCJA full deduction for all state and local taxes paid or accrued in carrying on a trade or business, whether paid at the entity level or by a partner/owner.
• Continue the TCJA higher exemption amounts for the individual Alternative Minimum Tax, simplifying filing for many taxpayers.
• Preserve the cash method of accounting's availability for tax purposes.
• Increase the Form 1099-K reporting threshold from $600 to $10,000 or above for third-party payment platforms.
• Include the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act (S. 400), which would provide businesses with certainty by making permanent a temporary paid family leave tax credit.
The tax priorities letter focuses on a specific number of provisions that the AICPA has been quickly putting its focus on. The immediacy is because of their possible consideration in the 2025 tax legislative process. The 2025 Tax Legislative Compendium is a comprehensive list of 69 tax proposals that the AICPA’s tax committees and panels have developed and updated for each Congress to consider.
The AICPA’s 2025 Tax Legislative Compendium has 69 proposals such as 14 disaster tax relief recommendations. The overarching aim for these proposals is to enhance tax administration and make the tax code fairer while effectively promoting key policy objectives.