IRS to Hold Meetings on Real-time Tax System
The Internal Revenue Service is planning a series of public meetings to solicit opinions about long-time changes to the tax system. Starting with a December 8 meeting in Washington D.C., these events will focus on moving away from the current "look back" compliance system and changing to a real time system in which returns are matched when they are first filed. The change was outlined in April by IRS Commissioner Douglas Shulman.
Shulman said the goal is to reduce the burden on taxpayers and improve overall compliance. Under the system envisioned, the IRS could match tax returns with third-party information during processing and give taxpayers a chance to correct information before returns are accepted if they contain data that does not match IRS records. The IRS says that currently it is not uncommon for a taxpayer to receive a notice 12 to 18 months after a return has been filed asking for correct information.
The first meeting will be held at the IRS Headquarters Building Auditorium, 1111 Constitution Ave., NW, Washington, D.C, and will feature representatives of consumer groups, the tax professional community and government representatives. Future meetings will include representatives of the employer and payroll services providers, the software industry, financial institutions and additional government representatives.
