New federal legislation is giving millions to the IRS to simplify e-filing your income tax. One of the options being considered is having the IRS figure your taxes for you. CPA Money Manager Bill Dendy says this started years ago. "One of the big changes they made [in the past years] was to raise the standard deduction to such a high amount - that very few tax payers have to take the time to itemize their deductions. The next step will be for the IRS just to prepare their taxes for them!"
Another option is to not have to file taxes at all - the IRS will take the correct amount of withholding from your paycheck, and Dendy says we're not far from that now...at least for those who have only a W2.
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The IRS is also working on ways to continue to simplify e-filing with another option - having a standardized, simpler government version of the tax filing software. Dendy explains. "If the IRS takes the control of this they figure there will be a whole lot fewer errors, and a whole lot less risk for audits and other problems...so it will make it a lot easier for tax payers going forward."
More federal dollars are approved to go to the IRS for enforcement of auditing people with small businesses, pass-through income and complex investments - because that is where more fraud and errors are made.
photo: GettyImages
IRS says they are working on simplifying tax prep.Photo: Getty Images