IRS to Hold Public Talks on “Real Time” Tax System

by

According to a report by Accounting Today, the Internal Revenue Service will begin a series of public meetings next week to discuss its plan to create a "real-time" tax system. IRS Commissioner Doug Shulman described such a system in a speech last spring.

According to Mr. Shulman’s vision, in a real-time tax system, taxpayers would learn quickly whether information in their tax returns matched IRS records.  The idea is that with the availability of interchangeable electronic data, the future will see less paper based third party reporting on forms like 1099’s, W2s’, and 1098’s, and more electronically filed reporting which would allow immediate comparison of filed tax returns.  The IRS would move away from its 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 with the data in the information returns it has received from other sources. The goal is to improve the tax-filing process and improve overall tax compliance.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: