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Posted 12/9/11
IRS Real-Time Tax System Proposal Gets Initial Nod At Public Meeting
The IRS held a public meeting December 8th on Commissioner Shulman's vision of a "real-time tax system" where the IRS would use information reporting forms, such as W-2s and 1099s, as an initial screen of reported income on tax returns before the return was finally accepted. NSTP Board Member Keith Huebel attended the meeting. Several panels of speakers offered comments on the proposal, most of which were positive. Shulman gave a spirited talk on the planned new system to a packed auditorium, stating that IRS modeling has determined that no filing deadlines will have to change under the new system. The move could result in significant savings to the IRS, reducing the need for the expensive notice program now in effect to address information reporting discrepancies. Shulman also assured the audience that the plan is not a move toward having the IRS send pre-filled returns to taxpayers.
The second in a series of planned public meetings will take place in January, when government officials, employers, and consumer groups will be able to weigh in on the idea. The NSTP will keep you posted on developments as they occur. This is a long-term project for the IRS and is not likely to be implemented anytime in the near future.