More indecipherable tax code


Sue, who already is a CPA / CFE , will be completing her Masters in Taxation in April. She just found the following incomprehensible piece of tax code as part of her studies.

1) §665(e) Preceding Taxable Year: For purposes of this subpart: (1) In the case of a foreign trust created by a United States person, the term “preceding taxable year” does not include any taxable year of the trust to which this part does not apply; and (2) In the case of a preceding taxable year with respect to which a trust qualified, without regard to this subpart, under the provisions of subpart B, for purposes of the application of this subpart to such trust for such taxable year, such trust shall, in accordance with regulations prescribed by the Secretary, be treated as a trust to which subpart C applies.

There’s just no reason to write gibberish like this, and tax codes are usually written this way – and worse.

  • DJ

    There’s a solution on the table.

    It would replace the entire tax code (income, payroll & estate) with a national sales tax. I’m not 100% convinced, but before you object to it on principle, read the bill through. It’s well-thought out and includes a monthly rebate for families.

    One effect would be that it would encourage production and discourage consumption– probably good for the economy, almost certainly good for the environment.

  • Sue

    Regarding the proposed “fair tax,” it would be the height of irony if the income tax was repealed just as I graduated from an accelerated masters program in taxation. Sense of accomplishment & job well-done dashed on the rocks of irrelevancy. Sweet.

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