Former IRS Insider Gives Peek behind Development of Net Investment Income Tax
The Net Investment Income Tax, which was included as part of the Affordable Care Act, will be hitting taxpayers and practitioners alike this coming tax season.
One of those practitioners is David Kirk, executive director of personal tax services in the National Tax Department of Ernst & Young LLP in Washington, D.C. He brings a unique perspective, having worked at the Internal Revenue Service as an attorney in the Passthroughs and Special Industries division of the Office of Chief Counsel helping develop the forms and instructions to implement the tax before joining EY in March. The IRS recently finalized Form 8960 used for filing the NITT and the associated instructions.
The NIIT, which took effect Jan. 1, 2013, subjects taxpayers with incomes over $200,000 per year ($250,000 for married taxpayers filing jointly) to an extra 3.8 percent tax on the lesser of their net investment income, or the amount by which their modified adjusted gross income exceeds the applicable threshold. Read more on Accounting Today.