Washington, D.C. (April 11, 2025) – In a letter to Senate Majority Leader John Thune (R-SD) and Senator Catherine Cortez Masto (D-NV), the American Institute of CPAs (AICPA) commended the leadership of these two Senators on behalf of American businesses and employees through the introduction of the bipartisan Mobile Workforce State Income Tax Simplification Act of 2025. This bill provides uniformity for nonresident state and local income tax withholding and a reasonable de minimis exception from the assessment of state and local income tax in a jurisdiction in which an employee does not reside.
For more than a decade, the AICPA has strongly advocated for mobile workforce legislation to ease nonresident state income tax withholding and compliance burdens for taxpayers and businesses across the country. Having a uniform national standard for nonresident state and local income taxation, withholding and filing requirements will simplify and enhance compliance with all of the different state and local tax laws and reduce unnecessary administrative burdens on businesses and their employees.
“In today’s world, the ‘workplace’ as we know it is changing and expanding. More and more employees cross state lines in the course of their job duties, but varying state income tax withholding laws make compliance extremely difficult and time consuming. Tax simplification is one of the guiding principles of good tax policy on which the AICPA advocates, and this bill supports that principle by reducing unnecessary administrative burdens on businesses and their employees,” said Melanie Lauridsen, AICPA Vice President of Tax Policy & Advocacy. “We are grateful to Senators Thune and Cortez Masto for their leadership on this issue. We strongly support this legislation and urge other members of Congress to support American taxpayers and businesses by passing this bill.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 400,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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BACKGROUND
March 11, 2025 – Mobile workforce coalition map and information and COST map
February 2021 – Congressional bills (117ᵗʰ Congress) Supported by the AICPA:
2020 - AICPA-COST supported state model legislation for 30 days in nonresident state before withholding and liability
August 27, 2020 – Letter of support led by AICPA and the Council On State Taxation (COST), cosigned by the Mobile Workforce Coalition and 120 organizations, including 45 state CPA societies.
June 18, 2020 – AICPA comments to Congress in support of Senator Thune’s S. 3995, the Remote and Mobile Worker Relief Act of 2020.
March 10, 2017 – AICPA letter to U.S. House of Representatives, supporting H.R. 1393, the Mobile Workforce State Income Tax Simplification Act of 2017.
April 7, 2016 – AICPA written testimony in support of H.R. 2315, the Mobile Workforce State Income Tax Simplification Act of 2015, Committee on Small Business.
June 2, 2015 – AICPA written statement in support of H.R. 2315, the Mobile Workforce State Income Tax Simplification Act of 2015, Committee on the Judiciary.
April 28, 2014 – AICPA cover letter, written statement and oral testimony on H.R. 1129, the Mobile Workforce State Income Tax Simplification Act of 2013.
November 15, 2011 – AICPA letter in support of H.R. 1864, the Mobile Workforce State Income Tax Simplification Act of 2012, House Committee on the Judiciary.
May 25, 2011 – AICPA oral testimony and written testimony in support of H.R. 1864 and S. 3485, the Mobile Workforce State Income Tax Simplification Act of 2012.
May 19, 2011 – AICPA Issue Paper and legislative recommendations regarding workforce mobility.
November 1, 2007 – AICPA written statement in support of H.R. 3359, the Mobile Workforce State Income Tax and Fairness Simplification Act of 2007, Committee on the Judiciary.
Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com