President
Trump released his FY2020 budget proposal on March 12. [A Budget for a Better America – Promises Kept. Taxpayers First, page 82] It slightly
increases IRS funding to “expand and strengthen tax enforcement.” Such efforts
“are estimated to generate approximately $47 billion in additional revenue
at a cost of $15 billion, yielding a net savings of $33 billion over 10
years. The Budget also includes several
proposals to ensure that taxpayers comply with their obligations and that
tax refunds are only paid to those who are eligible, including: improving oversight of paid tax
preparers; giving IRS the authority to correct more errors on tax returns
before refunds are issued; requiring a valid Social Security Number for
work in order to claim certain tax credits; and in-creasing wage and
information reporting.”
The budget also notes that there is $290 million for the IRS’ multiyear effort to
modernize its IT. The report notes that while about 90% of individuals file
electronically, most other interactions between the IRS and taxpayers is via
the mail, “which slows the resolution of issues.”
That is a true and interesting observation. 89% of individuals e-file there return. Yet other interactions with the IRS will be by phone or the U.S. Post Office. Will IT modernization include taxpayer accounts where taxpayer not only pay their taxes but can also change withholding, make estimated tax payments, amend their return, etc.?
Today, March 13, the IRS issues a news release that $1.4 billion is waiting to be claimed by individuals who have not yet filed their 2015 returns! [IR-2019-38] If tax compliance were done virtually, with the IRS using data it has, the filing could be done automatically and refunds issued to bank accounts. Or at least the IRS could more easily reach taxpayer via a text message, for example, to let them know they need to file and are likely owed a refund.
What do you think?
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2 comments:
Excellent! That would be wonderful IF IRS would notify taxpayers via text or email. Of course, how would that information be given to IRS and how would security be set up to insure false emails would not attempt to scam the taxpayer? Great ideas, Annette!
Thanks for the comment Connie. Ideally, taxpayers would have online accounts and the owner would be notified by a message icon showing up on your app. The IRS could help the taxpayer get the return filed and direct them to resources to understand their tax situation.
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