Tax Simplification Day
The AICPA declared April 16, 1991, "National Tax Simplification Day" commencing a campaign for simpler tax laws. The New Jersey Society of CPAs selected October 16, 1991, as the date of "Tax Simplification in New Jersey" to kick off a six-month campaign that will culminate on April 16, 1992, with the AICPA's efforts.
A number of New Jersey CPAs marked the beginning of the simplification emphasis by identifying everyday examples of how tax complexity affects taxpayers.
Anne O'Connor on Interest Expense. Not long ago, all interest expense was fully deductible. Now there are six types: home mortgage, home equity loan, personal, investment, passive activity, and business interest. The rules covering the deductibility of these expenses have evolved into a "mass of complicated computations."
Michael Crawley on AMT. One of the leading causes of complexity are the two systems of taxation in the U.S.: the regular tax system and the alternative minimum tax system.
E. Martin Davidoff on Kiddie Tax. The rules for taxing unearned income of children under age 14 are too complex and require information from the parents' and siblings' tax returns to prepare the kiddies' returns. …