AICPA wants guidance on Trump Accounts from IRS

The American Institute of CPAs asked for guidance from the Internal Revenue Service and the Treasury Department on the Trump Accounts for newborns as well other provisions of the One Big Beautiful Bill Act involving itemized deductions, estates, trusts and gift tax reporting.

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In a letter Wednesday, the AICPA requested guidance on:

• The gift and generation-skipping transfer tax treatment of Trump Account contributions;
• The ordering rules for returning excess contributions made to an eligible individual’s Trump Account and allocation of gain or loss related to such excess contributions;
• Clarification of the prioritized listing mechanics for authorized individuals electing to open Trump accounts for an eligible individual; automatic enrollment of eligible individuals in Trump Accounts and the federal pilot program; 
• Form 8879-TA use with electronically filed tax returns; 
• The new responsible party selection after the Trump Account is established; and
• Clarification of whether an index is composed primarily of U.S. equity investments, and the circumstances under which assets may be held in non‑eligible funds for a de minimis time during the growth period.

The AICPA also asked for more guidance on the Section 68 limitation on itemized deductions, including: 

• The Section 68 limitation calculation for individual, estate and trust taxpayers whose taxable income exceeds the 37% tax rate beginning threshold; and 
• Estates’ and trusts’ limitation on itemized deductions regarding charitable deductions, income in respect of a decedent deductions, Section 642(b) deductions, income distribution deductions and certain administration expenses deductions, as well as the definition of adjusted gross income under Section 67(e).

“The lack of detailed guidance in these areas creates uncertainty as well as operational and compliance challenges,” said Eileen Sherr, director of tax policy and advocacy for the AICPA, in a statement Thursday. “Our recommendations will help to create a consistent and reliable framework for income tax deductions and continued account management, reduce administrative burdens and protect beneficiaries.”

Separately on Thursday, the AICPA also announced the speakers for its annual Engage conference will include actor and entrepreneur Ryan Reynolds, who starred in the “Deadpool” films and co-founded Mint Mobile and Aviation American Gin. Reynolds also co-owned the Welsh soccer team Wrexham AFC, featured in the reality TV series, “Welcome to Wrexham.” Former Costco CFO Richard Galanti is also scheduled to speak about his nearly four decades of managing the finances of the retail chain before his retirement last year. Engage is scheduled to  run June 8–11 at the Aria Resort & Casino in Las Vegas.