H.R.1152 - Electronic Filing and Payment Fairness Act (119th Congress)
Summary
H.R.1152, the Electronic Filing and Payment Fairness Act, seeks to amend the Internal Revenue Code of 1986. The amendment aims to apply the 'mailbox rule' to electronically submitted documents and payments to the IRS. This means the date of electronic submission would be considered the date of filing or payment, regardless of when the IRS receives or reviews it.
Expected Effects
The primary effect will be to provide taxpayers with certainty regarding the timeliness of their electronic filings and payments. This eliminates potential penalties or interest charges due to delays on the IRS's end. The Secretary is required to issue regulations by December 31, 2025, to implement these changes, which will apply to documents and payments sent after that date.
Potential Benefits
- Provides taxpayers with certainty regarding filing and payment dates.
- Reduces the risk of penalties or interest due to IRS processing delays.
- Simplifies tax compliance by aligning electronic submissions with the traditional 'mailbox rule'.
- Encourages the use of electronic filing and payment methods, potentially increasing efficiency for both taxpayers and the IRS.
- Reduces administrative burden by clarifying the effective date of submissions.
Potential Disadvantages
- Potential for increased disputes if systems do not accurately record submission times.
- Requires the IRS to update its systems and procedures to accommodate the new rule.
- Could create a loophole for taxpayers who attempt to file or pay at the last minute, potentially overloading the system.
- May require additional guidance and education for taxpayers to understand the new rules.
- Potential for technical glitches or errors in electronic submission that could lead to disputes.
Constitutional Alignment
This bill aligns with the constitutional principle of fairness and due process, as it seeks to provide clarity and certainty in tax compliance. While the Constitution does not explicitly address tax filing procedures, Article I, Section 8 grants Congress the power to lay and collect taxes. This bill provides a mechanism for the efficient and fair exercise of that power. The bill does not infringe upon any specific constitutional rights or freedoms.
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).