Congress Introduces Bill to Have IRS Automatically Fill out Tax Forms

[taxxcpa]

One size doesn't fit all

For many people, whose only income is a W-2 and some dividends and interest, this would work pretty well. It might need a little fine-tuning if the payers issued a corrected copy after the first version. Possibly a supplemental version imposing no penalties or interest for corrections.

However, it would only be a minor part of tax returns for self-employed and people with rental properties.

The end result would be to simplify it significantly for maybe half of the taxpayers.

Of course any government program to simplify taxes generally complicates it.

[JohnH]

NPR ran a story on this a few days ago. I though most of the parties were ill-prepared and only partially understood tax preparation. However, one of them suggested that about 50 million taxpayers might be able to avail themselves of this option. I can't vouch for the figure, but it wouldn't surprise me - especially if the standard deduction were raised and a few other adjustments made for dependents, etc.

[taxea]

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.

It certainly is stupid and a big waste of money. So much simpler if they would provide a site where TP could download their income reported by third parties. Think of all the people who will just pay the bill thinking it is accurate.

[John of PA]

If the US adopted such a program it could backfire. There may be many taxpayers, who when presented with the IRS draft of thier tax return for approval, see that the tax liability is less than if they prepared their own return (from 1099 type income where no 1099 was issued), so they proceed as if this is an offer from IRS to settle the tax year and they sign off, not reporting thier full tax return, basically tax evasion being accomidated by the Govt.

[taxea]

This is what happens when tax rules are introduced by members of Congress who are ignorant of tax prep. I just don't see any way that they could produce a return that is any where near accurate.

[taxmom34]

does anyone know if these congressmen even consulted with preparer, CPA, EA ? I guess it could work for the guy with a W2 and some interest or dividends but how will IRS know if they qualify as dependents of someone else or that they can claim themselves. these younger people could save a bundle by not going to tax preparers for $100 + to file their return or go on software site for free and screw up the return. my manager used to say that all software is only as good as the person inputting information. so, when you go on turbotax or HRB if you don't know what you are doing don't blame the software. I think all high schools should be teaching these young people on how to at least be able to read and file a simple form and proper language to identify what you're talking about (such as tax liability, tax refund, balance due, credits, deductions)

[taxea]

does anyone know if these congressmen even consulted with preparer, CPA, EA ? I guess it could work for the guy with a W2 and some interest or dividends but how will IRS know if they qualify as dependents of someone else or that they can claim themselves. these younger people could save a bundle by not going to tax preparers for $100 + to file their return or go on software site for free and screw up the return. my manager used to say that all software is only as good as the person inputting information. so, when you go on turbotax or HRB if you don't know what you are doing don't blame the software. I think all high schools should be teaching these young people on how to at least be able to read and file a simple form and proper language to identify what you're talking about (such as tax liability, tax refund, balance due, credits, deductions)

Do you think you could find a congress person who would admit they haven't a clue about the laws they enact? I wonder how many have ever done their own return.

[Black Bart]

Here's a

recent related piece on the subject -- no new developments, but an interesting commentary (even if I do disagree) and stats. I knew fewer and fewer of my clients were paying taxes nowadays, but didn't realize non-payers were almost half (if that indeed is really the case).

http://www.foxnews.com/opinion/2013/04/15/should-irs-just-send-us-bill/

[Bees Knees]

but didn't realize non-payers were almost half (if that indeed is really the case).

Look at the back inside cover of TTB at the top. The bottom 50% of all taxpayers only paid 2.3% of total income taxes while the top 50% paid the other 97.7%.

[Jiggers]

recent related piece on the subject -- no new developments, but an interesting commentary (even if I do disagree) and stats. I knew fewer and fewer of my clients were paying taxes nowadays, but didn't realize non-payers were almost half (if that indeed is really the case).

http://www.foxnews.com/opinion/2013/...-send-us-bill/

Didn't a political candidate in this last election raise some stink when he commented about 47%......