One provision would restore the proper relationship between tax preparers and taxpayers by equalizing IRS disclosure standards.  The other provision would free businesses from onerous recordkeeping requirements for cell phones. 

The provisions are included in H.R. 5719, the "Taxpayer Assistance and Simplification Act of 2008," passed by the House on April 15.

"We are delighted that House members voted in favor of these two provisions that are so important to the CPA profession and business community," Barry C. Melancon, president and chief executive officer of the AICPA, said.  "We urge Congressional leaders to seek a solution to the unrelated, controversial provisions in the bill so that the legislation can move forward in the Senate."

The bill, however, faces a veto threat from the White House because of provisions the Bush administration says would impose new administrative burdens on trustees of Health Savings Accounts and would repeal IRS's authority to use private debt collectors.

Tom Ochsenschlager, AICPA vice president for taxation, said, "We believe legislation is the only way to correct the flawed law passed by Congress in May of 2007 that raised the tax return reporting standards for tax return preparers to a level higher than that required of taxpayers."  Ochsenschlager explained that these unequal thresholds create the potential for conflicts of interest between preparers and their clients, and consequently could affect the nature of taxpayers' representation. 

The cell phone provision of H.R. 5719 would remove cell phones and similar telecommunications equipment from the definition of "listed property" in the Internal Revenue Code.  "Technology and business practices have changed significantly since cell phones were first introduced and required to be treated as "listed property," Ochsenschlager said.  "It's time to lift these burdensome rules off taxpayers."