H.R.1075 - Tax Administration Simplification Act (119th Congress)
Summary
H.R. 1075, the Tax Administration Simplification Act, aims to amend the Internal Revenue Code of 1986 to improve tax administration. The bill includes provisions to apply the mailbox rule to electronically submitted documents and payments, extend the time for making S corporation elections, and adjust quarterly estimated income tax payment deadlines for individuals. These changes are intended to simplify tax processes and provide taxpayers with more flexibility.
Expected Effects
The bill will likely result in more timely tax filings and payments due to the expanded mailbox rule. S corporations may benefit from the extended election period and the ability to correct late elections. Individual taxpayers could experience a slight easing of the burden of quarterly estimated tax payments.
Potential Benefits
- Simplifies tax filing by treating electronic submissions as timely based on the sent date.
- Provides more flexibility for S corporations in making elections and correcting errors.
- Adjusts quarterly estimated tax payment deadlines, potentially easing the burden on individual taxpayers.
- Reduces potential penalties for late filings or payments due to mail delays or processing times.
- Streamlines administrative processes for the IRS through electronic filing and payment.
Most Benefited Areas:
Potential Disadvantages
- The shift in deadlines might cause confusion for some taxpayers initially.
- The extended S corporation election period could lead to more complex tax planning scenarios.
- Potential for increased errors if taxpayers misinterpret the new rules.
- The changes may require the IRS to update its systems and procedures, incurring costs.
- Some taxpayers may not benefit from the changes if they already file and pay taxes on time.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble) by aiming to improve tax administration and reduce burdens on taxpayers. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes. The specific provisions of the bill, such as adjusting deadlines and election periods, fall within Congress's authority to regulate the collection and administration of taxes.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).