Contact:
Joanne S. Barry
Director, Communications Division
212-719-8354
jbarry@nysscpa.org

or

Sanjay Paranandi
Public Relations Specialist
212-719-8364
sparanandi@nysscpa.org

New York, NY, June 2, 2003 –Now that President Bush has signed the Jobs and Growth Tax Relief Reconciliation Act of 2003 into law, the New York State Society of Certified Public Accountants (NYSSCPA) strongly urges Congress to address simplification issues either in IRS regulations or in future legislation.

A specially appointed NYSSCPA task force of CPAs has identified the more egregious areas of the Internal Revenue Code that are eligible for simplification, outlines why they are complex and offers solutions to assure proper compliance.

“Our goal was to make less complex some of the more complicated areas of the tax law,” Alan E. Weiner, chair of the Task Force said. “The legislation that the President signed has not addressed simplification.”

The areas the Task Force targeted for simplification, included in a 25 page report sent to selected members of Congress, include specific recommendations on areas of the tax code including the Earned Income Tax Credit, Alternative Minimum Tax, and the Social Security Tax. Also addressed are phase out issues, limitations on deductions and sunset issues in the current laws.

The suggestions made by the Task Force titled, “Comments on Task Simplification” are explained in detail on our website at www.nysscpa.org under the Info/Highlights Section.

Here are some highlights:

• Earned Income Tax Credit. Congress implemented this law to give low income taxpayers an added benefit to raise all workers above the poverty level, which included an offset to the burden of social security taxes. Understanding the intricacies of the Earned Income Credit and the differences with other tax provisions make this a daunting process that sometimes deters those trying to accurately obtain this substantial benefit. The NYSSCPA Task Force offers suggestions to streamline paperwork, requirements to ensure that the law benefits those for whom it was intended.
• Alternative Minimum Tax (AMT). The purpose of this tax was to require that all taxpayers paid at least their fair share of taxes by identifying loophole deductions (referred to as preferences). The law that passed included items that were arguably not loopholes. The AMT in its present form is out of step with the current tax law. The AMT presents hardships to the taxpayer who prepares his own return by imposing a second tax calculation mechanism, as its name implies. The task force report addresses elimination of certain preference adjustments and modifications to the rate and exemption amount.
• Taxation of Social Security Benefits. This tax is unduly complicated and cumbersome. Taxpayers must consider numerous modifications to income and calculations to compute the amount taxable. The task force recommends that the amount of social security benefits included in income should be a fixed percentage. The report also discusses the repeal of specific inclusions, indexing of base amounts, and limit to allowed modifications.

“Now that Congress has acted on a tax bill, we strongly urge that the suggestions of our Task Force be incorporated in regulations or future legislation, “said Jo Ann Golden, NYSSCPPA President.

Further details can be obtained from Alan E. Weiner, Chair of the Society's Task Force at 631.752.7400, Extension 330.

About the NYSSCPA
Representing nearly 30,000 CPAs, the New York State Society of Certified Public Accountants (NYSSCPA) is the oldest and largest state accounting organization in the nation. Incorporated in 1897, the Society is a nonprofit organization that seeks to establish and maintain high standards of integrity, honor, and character among certified public accountants. Its members are CPAs working in public or private practice in a state that serves as the home of Wall Street and major financial institutions.

The New York State Society of CPAs is located at 530 Fifth Avenue, New York, NY 10036. To learn more about the Society call 800-633-6320 or visit the Society’s website at www.nysscpa.org.