GAO studies benefits of alternative tax system.As many as 51 million taxpayers, or 45% of those who filed 1992 tax returns, no longer would have to prepare returns if the Internal Revenue Service adopted an alternative filing system, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report published by the General Accounting Office. Tax Administration: Alternative Filing Systems, published in October October: see month. , examined the ramifications ramifications npl → Auswirkungen pl if the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. prepared and mailed tax returns to taxpayers based on income reported by employers on form W-2 and the 1099 series information returns. Not the best system for everyone Under this alternative filing system, the IRS would mail returns and refunds or bills to taxpayers, who would then review the returns for accuracy and notify the IRS if they questioned the results. The GAO estimated that taxpayers could save up to 155 million hours on tax return preparation and the IRS could cut processing and compliance costs by as much as $37 million annually. However, professional tax preparers, financial institutions and employers could lose under this system. For example, the report said that preparers could 1ose millions of dollars in fees, and employers and financial institutions would be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to file information returns more quickly or electronically. High hurdles remain The IRS currently needs a long time to process information returns, so it is not likely that, under a tax reconciliation system in which the IRS would have to do even more return processing, taxpayers would receive their federal returns by the congressionally mandated April 15 deadline. The report said it was likely a return-free system could not be implemented until the IRS was prepared to meet the federal due date for filing tax returns. The GAO also questioned the number of taxpayers that would voluntarily participate in the new system. Citing the results of a 1993 focus group, the report said the reconciliation system could fail because taxpayers did not trust the IRS to accurately prepare returns and they doubted procedures would be in place to obtain adjustments if they disagreed with IRS-prepared returns. IRS urges more electronic filing In response to the GAO report, IRS Deputy Commissioner Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. P. Dolan Dolan is a surname, and the following people:
In governmental planning and budgeting, the attempt to measure the social benefits of a proposed project in monetary terms and compare them with its costs. might not be available and the costs' of a tax agency reconciliation system would be higher than the costs to process electronically filed returns. Acknowledging the IRS's views, the GAO said there might be no need for the alternative filing system if the IRS could get most taxpayers to file electronically. A free copy of the GAO report (GGD-97-6) can be obtained by calling the GAO order department at 202-512-6000. |
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