Congressman Sherman (CPA) Introduces Legislation to Simplify Tax Return Filing
Washington, D.C. – Today, Congressman Brad Sherman, CPA, senior member of the Financial Services Committee, and former Chair of the nation’s second largest tax agency introduced the Tax Filing Simplification Act of 2017 with Representatives Don Beyer (D-VA), Grace Napolitano (D-NY), Eleanor Holmes Norton (D-DC), Jamie Raskin (D-MD), Tim Ryan (D-OH), and Tom Suozzi (D-NY). The bill is based on legislation introduced in the U.S. Senate by Senator Elizabeth Warren (D-MA).
The bill would direct the Internal Revenue Service (IRS) to develop a new program to provide taxpayers with a pre-prepared tax return with their income tax liability or refund amount already calculated. For most taxpayers the IRS already has all the relevant information from their W-2 and 1099s. For other taxpayers the IRS has almost all the information needed—the taxpayer could simply add a deduction or two, and then press submit.
“Under the Tax Filing Simplification Act, most Americans would receive a tax return already prepared by the IRS. They could hit ‘submit’ and they’re done. Or they could make changes and then hit ‘submit’,” said Rep. Sherman. “Or they could simply ignore the IRS pre-prepared return and submit their returns just as they do now.”
The legislation also makes two other common-sense changes to assist all taxpayers with preparing and filing their taxes. First, the bill requires the IRS to create new software to allow all taxpayers to prepare and file their taxes directly through the IRS. Additionally, the bill would also allow taxpayers to download information the IRS already has (like their W-2 and 1099 forms) directly from the IRS’s website.