AICPA offers US tax forms improvements

The American Institute for CPAS (AICPA) has presented recommendations at the Ministry of the Ministry of Finance of the United States and the Internal Revenue Service (IRS) to improve the tax forms used by property and trusts.

These proposals are intended to simplify the submission process and to be aligned with the federal term for electronic tax transactions.

The forms in question include Form 1041, formulation instructions 1041 and schedules A, B, G, J and K-1, as well as Form 1041-A.

AICPA proposals are designed to facilitate electronic submission, reduce errors and protect sensitive information by moving from a physical mail to e -delivery.

Its recommendations are in response to an enforcement order 14247, which requires all federal tax payments and refunds to be processed electronically by 30 September 2025.

These proposals also adhere to the leading AICPA principles for good tax policy.

Currently, forms 1041 and 706 are missing information fields for direct deposits, which leads to problems such as limits for refund and inconsistencies in the name of the bank account, which prevent electronic refunds.

In addition, AICPa offers the authorization of electronic C-1 graphics to beneficiaries, which is not currently allowed, although many corporate trustees have developed electronic delivery systems.

AICPA also offers updates for Form 1041 to better deal with electronic submission, foreign tax loans and passive foreign investment companies. The current form structure is not favorable to modern tax complexities, especially in the international contexts, which leads to the processing of delays and difficulties in e -meal.

He also recommends an exception to submit a 1041-a form for charity deductions only from partnership contributions.

It also advocates to look at a project on Form 1041-NR for foreign property and trusts to provide clear guidance on Nongrantor’s foreign trusts, which earn income from the United States.

The Director of the Tax Policy and ACPA Aileen Sher said: “These outdated forms and paper are needed to be reviewed, as we suggested, especially as far as the submission of complex tax issues such as foreign investment and charity deductions.

“These recommendations will simplify the filing of taxpayers and practitioners and will help reduce the administrative burden on IRS while improving the efficiency of processing.”

In June 2025, AICPa presented additional recommendationsIncluding automatic exceptions for taxpayers who cannot comply with the executive order 14247, the delay in application until electronic payment and cooperation with stakeholders such as AICPA for the development of processes and implementation of rules are resolved.