Bill would have IRS fill out tax forms

[flashl]

Source: UPI

WASHINGTON, April 14 (UPI) -- Automatic tax filing could be in the future for 40 percent of U.S. taxpayers, eliminating a chore for many citizens, a New York congressman said.

Rep. Anthony Weiner will introduce a bill next week that proposes the option of allowing taxpayers to let the Internal Revenue Service handle their 1040EZ and 1040A tax forms, the New York Daily News reported Monday.

"More people will file. Fewer people will have to spend money on tax firms or on computer software. And we'll be improving the relationship between the IRS and taxpayers for whom April 15 is a big headache," Weiner said.

Taxpayers would review their forms before signing them. But, the work will be done by the IRS in conjunction with employers, the paper reported.

UPI

Read more: http://www.upi.com/NewsTrack/Business/2008/04/14/bill_would_have_irs_fill_out_tax_forms/2871/

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They say it would be voluntary. Your employer and the IRS filling out your tax form?

Yeah right. At first it will be voluntary.

[LSparkle]

1. Which 40%? Not the ones in the top 10% I'll bet

Why don't they just send us shmoes a BILL for our taxes? I'll submit to this if
Bill Gates does ...

[kestrel91316]

2. Sorry. They can keep their filthy mitts off my private books

until and unless they have me audited (again). And we know how well that didn't work out for them the last three times.

[PSPS]

3. This is probably a good idea for many taxpayers

Note that this does not involve the 1040 form, but the 1040EZ and 1040A forms which aren't used by the self-employed or those who itemize deductions.

There are a huge number of 1040-EZ and 1040-A filers that would benefit from this. There's no problem with privacy since these filers have nothing to report beyond what the IRS already receives directly from employers (W4) and banking institutions (1099.)

As it is now, these people just copy the information from the W4 and 1099 forms onto the tax return and mail it in. The IRS gets a copy of all of these forms too, so why not automate the process?

[angrycarpenter]

5. They do them anyway

I was told by them that they automatically do them as soon as the w2 is filed with them by the employer. If you do not owe and do not file it does not count against you. But you have to file to get the refund.

[aquart]

10. Absolutely.

It doesn't give the government access to one bit of information more than they were getting anyway.

[napi21]

14. I agree. It would save a LOT of people time, effort and worry.

I guess a lot of Duers do't realize just how many millions of taxpayers file the 1040EZ and 1040A. I've actually had people come to me and ask me to fill out their tax return for them because they didn't know ANYTHING about it. These were mostly young people working their first job, or older and someone else had always done it for them. It only takes about 10 mins. tops to fill out the darn EZ, but they were intimidated enough that they just wouldn't even try. I don't do taxes professionally. I'm an accountant and I'd do favors for friends, and of course friends of theirs.

I know every time I did one of the EZ's I questioned why this couldn't just be automatic.

[cloudbase]

4. Who has to hire a tax firm

or buy computer software to fill out the EZ or A forms?

[darue]

8. fools. but last I check there was no shortage out there... n/t

[Jimbo S]

13. My dad charges $30 to do a 1040EZ

Yet he has no shortage of people asking for his help.

[cloudbase]

15. EZ money there.

[whistle]

6. Let's just do it for everyone, I hate shelling out hundreds of dollars

...every tax season to have my returns prepared, or devoting 20 to 30 hours preparing them myself or even paying $00.05 plus to Turbo-Tax. To each according to their needs and everyone in America needs tax help

[darue]

7. this is great. excellent tax reform. take the drudgery out of it. let my withholding be it

I've called for this for years. for people with one job and one source of taxable income, the withholding deductions should be it. I guess I could handle them sending me a refund check, my endorsement of which constitutes agreement that they did the tax correctly. for non-complex tax filers, this would take much of the headache out of it.

[rmgarrette64]

9. OK, but...

If the IRS fills out your forms, does that mean that you are immune to an audit? Or are you responsible if they make a mistake?

Last I heard, the IRS expected this to be a "revenue enhancer." Does this mean they expect to not 'catch' all the deductions there should be? And will that then weigh more heavily on the poor?

Are you required to accept their work if they do it? Can you try to save additional money by doing it yourself? Can we have some guarantee that this option will remain?

I think I'd like to hear more before they institute a program like this.

R. Garrett

[darue]

12. well...

there are no deductions on a 1040ez. If you're itemizing you'd use a different form and this wouldn't be an option. the only reason they could make a mistake is if you have income that hasn't been reported to them but they somehow find out about it later.

[peacefreak]

11. I think this is a swell idea.

Nothin' like having the fox guard the chickens.:sarcasm:

[Orsino]

16. Anyone else read that headline as some sort of sweetheart deal for the Clintons?

:rofl:

Musta thought I was in GDP!

[Robbien]

17. This bill is not likely to pass. The lobbiests won't allow it.

There is too much money being made by the big tax preparers.

[high density]

18. No thanks

I file form 1040, but even if I filed 1040EZ or A I think it would probably take longer to check a prefilled form for errors than it would just to fill it out from scratch. If they want to simplify taxes, this is not the way to do it. Taking the third parties out of online filing would be a good start.