Democratic legislators focused on the ambiguity in the tax code and IRS regulations on the matter, saying it needs to be altered.

CNN: IRS official in charge of targeting unit takes the 5th

Dispute Your Tax Bill, But Not IRS Regulations!

FORBES: More IRS 6 Year Audit Pushback

The 3.8% Medicare Surtax is outlined in IRC Sec. 1411 under Chapter 2A. In addition to Code Sec. 1411, this past December the IRS also released proposed regulations to aid and guide taxpayers effected by this new tax.

FORBES: What the New 3.8% Medicare Surtax Means for You And Your Investments