The American Institute of CPAs (AICPA) believes the U.S. tax code should be simpler, much simpler. In a letter to the IRS, the AICPA urged the agency and U.S. Treasury Dept. to “continue pursuing tax simplification.” Among the suggestions supplied by the AICPA were safe harbor alternatives; clear and consistent definitions and simple, general rules; building on the record-keeping practices of businesses and industries; and matching the complexity of rules with the sophistication of the targeted taxpayer audience. The AICPA also suggested that tax authorities use “horizontal drafting,” which means that a rule placed in one tax code section should apply in other code sections.
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