Robert S. Keebler, CPA, in the Journal of Accountancy, interviews David H. Kirk, one of the two principal authors of the proposed and final net investment income tax regulations (T.D. 9644, REG-130843-13, and REG-130507-11), and who was an attorney in the Passthroughs and Special Industries Division of the Office of Chief Counsel of the IRS.
The net investment income tax, enacted by the Health Care and Education Reconciliation Act of 2010, P.L. 111-152, imposes a tax on individuals in tax years beginning after Dec. 31, 2012, of 3.8% of the lesser of net investment income for the year or the amount by which modified adjusted gross income (AGI) exceeds a threshold amount of $200,000 for a single individual or $250,000 for a married couple filing jointly. For estates and trusts, the tax is 3.8% of the lesser of undistributed net investment income or AGI over the dollar amount at which the highest trust and estate tax bracket begins (for 2014, $12,150).