AICPA, united with others, urges Congress to simplify Code.

AuthorFerguson, Carol B.
PositionTax Code

The AICPA recently joined forces with the American Bar Association (ABA) Section of Taxation and Tax Executives Institute (TEI) to urge that major simplification of the tax laws be an urgent and continuing priority of Congress. The three organizations held a joint press conference on Feb. 25, 2000, in Washington, DC, to release a package of recommendations that, if enacted, would bring about meaningful tax law simplification.

David A. Lifson, chair of the AICPA Tax Executive Committee, explained, "The impetus for this first-time joint effort of the three organizations came from an April 15, 1999 hearing of the Senate Finance Committee. The AICPA testified with both the ABA Tax Section and TEI. Our respective testimony highlighted many of the same complex areas of law in need of reform. Senator Roth challenged the three organizations to work together and develop an agreed-upon package of simplification recommendations to address these and other complex areas of law."

Mr. Lifson stated, "We are particularly pleased to have met Senator Roth's challenge before another April 15th tax-filing deadline has passed. Now we are issuing a challenge back to Congress--use our package of simplification recommendations as a starting point to create and enact legislation that will reduce the uncertainty and complexity burden imposed on many taxpayers."

For many years, the AICPA has maintained that Congress must give simplification a prominent position in the tax process on an on-going basis. Although it should not take precedence over revenue and tax policy objectives, simplification must be an integral part of the tax legislative, regulatory and administrative process. The Institute recognizes that a tax system that is "simple" for all taxpayers may never be designed, but a "simpler" system is attainable. It will, however, require both a review of current tax law and complexity analysis of new legislative proposals.

Paul J. Sax, Chair of the ABA Section of Taxation, raised the prevalent question at the press conference, "Why would the three leading organizations of tax professionals be advocates for simplification? Don't they make their living from tax complexity?" His response was that tax professionals understand something very important: the tax system is being undermined by complexity. The complexity of the Code is undermining the will of taxpayers to pay their taxes.

Charles W. Shewbridge III, President of TEI, noted that "TEI members know that the...

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