Paul L. Caron
Dean


Thursday, December 8, 2011

IRS Hosts Public Meeting Today on A 'Real-Time' Tax System

IRS LogoIRS to Host Public Meeting Dec. 8 on Real-Time Tax System (IR-2011-114):

The IRS will kick off a series of public meetings Thursday, Dec. 8 to gather feedback on how to implement a series of long-term changes to the tax system described by IRS Commissioner Doug Shulman in an April 2011 speech at the National Press Club. In that speech, the Commissioner described a vision where the IRS would move away from the traditional “look back” model of compliance, and instead perform substantially more “real time,” or upfront matching of tax returns when they are first filed with the IRS. The goal of this initiative is to improve the tax filing process by reducing burden for taxpayers and improving overall compliance upfront. Under the vision of a real-time tax system, the IRS could match information submitted on a tax return with third-party information right up front during processing and could provide the opportunity for taxpayers to fix the tax return before acceptance if it contains data that does not match IRS records.

Update: Bloomberg, IRS Commissioner Calls for Real-Time U.S. Tax Filing System

https://taxprof.typepad.com/taxprof_blog/2011/12/irs-hosts.html

IRS News, Tax | Permalink

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Comments

The British TaxMan
has a better idea;
Paychecks go right
to the State, which
passes on to the
worker whatever the
State decides he gets to keep.

Posted by: M. Report | Dec 8, 2011 9:34:46 AM

"...and could provide the opportunity for taxpayers to fix the tax return before acceptance if it contains data that does not match IRS records"

Nice, except that IRS records are often the ones in need of fixing.

Posted by: willis | Dec 8, 2011 9:48:39 AM

And what if the third party information is wrong? After all, mistakes happen without any ill intent. Who bears the brunt if there is a disconnect? For example, if by mistake an employer states that I paid only $800 in withholding but in fact I paid $8,000, who is presumed wrong?

Posted by: Matt Johnston | Dec 8, 2011 10:06:35 AM

I love the presumption in the IRS commissioner's statement that this will "provide the opportunity for taxpayers to fix the tax return before acceptance if it contains data that does not match IRS records."

Apparently, glitches never happen, and IRS records are never inaccurate.

Posted by: Biff | Dec 8, 2011 10:38:47 AM

This been done in Australia for years and I have never heard of a complaint, for the vast majority of wage earners it only means a few button clicks and their tax return is done

Posted by: madmike | Dec 8, 2011 7:04:48 PM