Congress Introduces Bill to Have IRS Automatically Fill out Tax Forms

[geekgirldany]

I am wondering how far this will go.

http://www.accountingtoday.com/news/Congress-Introduces-Bill-IRS-Automatically-Fill-Tax-Forms-66374-1.html?taxpro

[S T]

Well if you are on E-Services as a tax preparer (of course with POA) have you tried to retrieve a clients transcript in March or April of the current filing season, to prepare their return. Info is not there or only a part of the information. So that is not reliable. Another IRS burden - and they can't even provide timely and reliable information now.

As another response on the article pointed out, W-2's are submitted until Feb, delays on 1099 forms as late as April, and the Brokerage statements also as late as March for corrections.

If this bill goes through Congress will need to extend the 4/15 deadline, as IRS computer information is not posted.

I agree with some of the other posters in the link you posted. It just is not feasible.

If I were in Illinois and these two were in my District - am I going to vote for their Re-election - I would say nO - time for them to retire and take their Govt Pension.

Sandy

[Jiggers]

What about those with W-2's and are also self-employed? And have rental property? And are married? And have kids? How in the world is the IRS going to do that using their computers?

We have a hard time doing that with all the information in front of us.

What a foolish suggestion. And whoever introduced that bill proved how far out of touch Congress is with the real world.

Stupid. Stupid. Stupid.

[Golden Rocket]

Falling Out of Chair Laughing

At this stupid idea. To people like us it is so ridiculous it borders on humor.

However, the horror of it all? This is the kind of idiocy Congress loves to do. Remember the saga of the "send everyone 1099s?" which was
part of the Obamacare passed in 2009? And then, when the stupidity of the thing was brought to their attention, they took a vote and actually UPHELD it? Only after their own pet proteges in the IRS protested did they hold another vote and finally got rid of it.

Regardless of how stupid it sounds, this will be appealing to some of these power-brokers. Believing the entire problem of the black market would be solved by payer information returns, some of these out-of-touch people will buy into the idea. Mass taxation would shift from voluntary individual reporting to FORCED information return processing.

As all of us know, the government has a miserable record in getting payers (e.g. large employers, banks, custodians, institutions) to clean up their act, and the burden to clean up the mess from their sorry reporting has fallen on tax preparers. Historically, it has been easier for the IRS to beat up individuals than to enforce corrective action on the likes of WalMart, Bank of America, Prudential, etc. This quality of mass reporting coming from these places is whom the government would have to depend if these two congressmen have their way.

I join with the rest of you in hoping cooler heads will prevail and these two extremely out-of-touch congressmen get nowhere with this idiocy.
However, I'm not so sure their collegues aren't going to buy into the idea.

[John of PA]

This is common practice in many European countries. You first get a draft of the tax return prepared by the Govt., if you agree and sign off on it, it's done. If you do not agree, then you simply notify them that you are going to prepare your own (with the deduction they did not include).

[Roberts]

Foreign governments routinely provide their citizens with a tax bill due outlining how they determined it. It is up to the citizen to correct the final number. For a lot of citizens, the IRS has a pretty good idea what your tax will be about March 15th whether you file or not.

One thing I believe I can count on with 100% certainty. The US Government in its current form will never do away with CPAs and EAs doing tax returns for most citizens and they will not do away with special interest deductions.

[Jiggers]

My largest farmer grosses about $300,000 in cattle sales. Most at the local livesock auction. No 1099 issued to him. How does the IRS know his gross?

What about the expenses for feed, fertilizer, etc.? The IRS does not know that.

He also sells excess hay that he grows. No 1099's issued by the buyers. How does the IRS know this income?

Just one client. Probably half of my clients are Schedule C or F clients. I also have many with rental property.

There is no way that the IRS can accurately prepare anything realistic.

Just foolish to even consider this.

[Burke]

It may sound foolish, but the IRS Commissioner suggested they were looking into it last summer at the NATP Conference in Baltimore. For the vast majority of persons who file "short forms" with only W-2 and 1099 income, no itemized deductions or other special situations, it could work. There are a few people I can think of that I do for which it is feasible. TP's under age 24 who might be claimed by their parents would be a problem. And marital status, dependents, etc etc can change from year to year. They would have to revamp the tax code. (Where have we heard that before?) I am sure most of Congress would love this kind of simplicity, especially as to how it would affect their own tax returns, don't you think? Ha, ha, ha, ha, ha..........LMAO.

[Koss]

First Draft

John of PA wrote:

This is common practice in many European countries.

Yes, but this is not a European country. [LOL]

And Roberts wrote:

Foreign governments routinely provide their citizens with a tax bill due outlining how they determined it.

Yes, but the IRS is not an agency of a foreign government... [LMAO]

Unless you buy into some of those tax protester arguments.

BMK

[geekgirldany]

I believe it will eventually come to that EA, CPA, or anyone wanting to prepare tax returns will have to be an employee of the IRS. This is just one more step towards it.

[John of PA]

"This is not a European Country" ..... It is now, we have moved so much toward Socialism in the last few years that it will take a lot of reversing to get back.

[Koss]

Tax Preparer

I believe it will eventually come to that EA, CPA, or anyone wanting to prepare tax returns will have to be an employee of the IRS. This is just one more step towards it.

Employee or independent contractor?

BMK

[veritas]

two Illinois congressmen

Telling anybody anything is laughable.

[Black Bart]

I don't expect

anything to come of it, but I never gave electronic filing a second thought either.

My largest farmer grosses about $300,000 in cattle sales. Most at the local livesock auction. No 1099 issued to him. How does the IRS know his gross?

What about the expenses for feed, fertilizer, etc.? The IRS does not know that.

He also sells excess hay that he grows. No 1099's issued by the buyers. How does the IRS know this income?...

While I don't think government filing our returns would be workable, you've just pointed out a loophole that I've wondered about for years. I used to have several farm clients (not so much now) and, while the expense-reporting 1099s have been killed (thank Allah*), the income side (I think) is a wide-open opportunity for income-seeking revenuers to pounce upon. IRS could simply require all crop-processors (cotton gins, graineries, etc.) to issue disbursement 1099s. Right now a farmer can simply cash a crop check, throw away the detailed crop settlement sheet, and nobody's the wiser. If checked he can simply say he lost it and pay up (it's a flyable excuse: big farmers have lots and lots of them plus plenty of other paperwork). I don't know the extent of any abuse, but it's a big temptation; many settlements run into the upper five, if not six, figures.

Some time back a farmer brought me a CP2000 - I had reported "crop sales" of $XXXX just as he'd listed it, but he sold it to a co-op and they issue forms 1099-PATR. Those are usually just stock dividends for giving 'em your business, but this was a big outfit and they designated his $10K crop sales as "distributions" on it. So IRS CPed him wanting to know "Where's the rice?"

I replied and drew 'em a picture, so to speak, but they had caught the omission and it can be done if IRS was so-minded (only reason I can think of that this slumbering cornucopia has remained unmolested for decades is a good, strong, farm lobby in Congress). It would be hard at first getting the small outfits to go along, but, shoot, years ago hardly any of my small construction guys bothered handing out contract labor 1099s and now almost all do.

So you never know.

*You've gotta keep up with the times.
_________________________________

There shall be weeping and gnashing of teeth. -- MATTHEW. VIII 12

[DaveO]

I have to agree with S T about eservices

For the purpose of getting current factual information it is nearly worthless. I recently had to take an issue with a multi year non filer to the Advocate's office because eservices didn't update for over a year after the returns were filed. The last time I checked, a few months ago they still showed "No record of return filed" nearly two years after the returns were filed and accepted and fully a year after the tax was paid. We couldn't get the liens released because collections showed a balance due but we couldn't find out what year it was for or what amount. TheTA finally determined that no more money was owed and provided transcripts to show that.