Congress recently passed another revision of the Internal Revenue Code called the Taxpayer Relief Act of 1997. Most people would agree that an important goal of tax reform is simplification. On this score, Congress has again struck out. Leaving aside the usual assortment of goodies for influential constituents, a brief review of some of the income tax changes which may prove beneficial to working people illustrates the point.
Distributions are tax-free except to the extent they exceed education expenses in that tax year.
This brief review does not do full justice to the complexity of the new tax law or even to these provisions, but even this brief discussion should suffice to demonstrate that tax simplification is a contradiction in terms. Needless to say, the reader should consult a tax advisor for details on how these and other new provisions may affect the reader's own taxes. All Rights Reserved.