Tax Administration: Alternative Filing SystemsThere are two types of alternative tax filing systems found in other countries. In the tax agency reconciliationÓ system the taxing authority prepares the return for the taxpayer. In the final withholdingÓ filing systemÓ the taxpayers' income tax is withheld at the source & remitted to the tax agency by employers & other payers who are responsible for withholding taxes that equal but do not exceed each taxpayer's liability. This report determines the benefits, impediments, & costs to individual taxpayers, IRS, & others of establishing a tax agency reconciliation filing system under existing federal laws in which taxpayers could participate. Charts & tables. |
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51 million taxpayers agency reconciliation filing agency reconciliation system agency reconciliation type alternative filing system April 15 calculate Certified Public Accountants computer-generated tax returns Cost Estimates cost to process dividend electronic filing eligible for tax employers erroneous information returns federal tax federal taxable income filing status final withholding system Final Withholding Type flat tax Form W-2 income tax information return data information returns processing information to IRS Internal Revenue Service itemize deductions less than threshold married couples married filing separate million hours Number of taxpayers paid preparers payers percent Population and Cost potential underreporter preparing tax returns process information returns reconciliation filing system reconciliation type system refunds return preparation tasks return-free filing Schedule EIC separate married filing tax agency reconciliation tax at source tax liability tax preparers tax return preparation tax system taxed through tax taxpayer information form taxpayers who filed Type Filing Systems underreporter program wage Withholding Type Filing
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Page 21 - We requested comments on a draft of this report from the Commissioner of Social Security or his designee. The Commissioner provided us with written comments, which are discussed in the "Agency Comments and Our Evaluation" section and are reprinted in appendix I.
Page 1 - Chairman Subcommittee on Treasury, Postal Service and General Government Committee on Appropriations House of Representatives...
Page 24 - At that time, we will send copies of this report to the Ranking Minority Member of...
Page 9 - ... lived with the taxpayer in the United States for more than half of the tax year.
Page 9 - ... under age 24 and a full-time student, or any age and permanently and totally disabled...
Page 18 - Hawaii ldaho innois lndiana lowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Missouri Montana Nebraska...
Page 25 - General, and other interested parties. We will also make copies available to others upon request. The major contributors to this report are listed in appendix IV. If you have any questions concerning this report, please contact me at (202) 512-9044. Sincerely yours, Natwar M. Gandhi Associate Director, Tax Policy and Administration Issues PMC 11 GACVGGI^M-17* Proper Tn*twnt of Tuw...
Page 18 - No state income tax Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming 8.5 million Source: Federation of Tax Administrators and lRS
Page 5 - Specifically, before a final withholding system could be instituted in the United States, the law would have to be changed to require employers to calculate employees' tax liability and adjust employees' last paychecks so that total yearly withholdings would equal employees
Page 38 - This program is authorized under section 6020 of the Internal Revenue Code. It authorizes the Secretary of the Treasury or his delegate to prepare tax returns for persons who file a false or fraudulent return or fail to file a return. Population and Cost Estimates for a Ta Agency Reconciliation System Handling taxpayer adjustments to IRS prepared returns: On the basis of the results of IRS...