AICPA Urges IRS to Modernize Tax Forms for Estates and Trusts

Washington, D.C. — The American Institute of Certified Public Accountants (AICPA) recommended that the Internal Revenue Service (IRS) improve tax forms used by estates and trusts. This suggestion follows an executive order directing that federal tax payments and refunds be processed electronically.

In a letter dated September 12, AICPA Director of Tax Policy & Advocacy, Eileen Sherr, emphasized the need for modernization. She stated, “These outdated forms and paper filing should be revised as we suggested, particularly as they pertain to complex tax issues like foreign investments and charitable deductions.”

Sherr added that the changes would simplify the filing process for both taxpayers and tax professionals. The AICPA emphasized that these improvements would also ease the administrative workload on the IRS, ultimately increasing processing efficiency. The AICPA’s recommendations comply with the Executive Order 14247, which mandates compliance by September 30, 2025.

Additionally, AICPA’s suggestions build on earlier comments regarding Form 1041 and Form 1041-A. They also include a proposed Form 1041-NR, designed for foreign estates and trusts, along with relevant schedules. These forms remain pivotal as the IRS seeks to enhance its services and processing capabilities for estates and trusts.