H.R.1152 - Electronic Filing and Payment Fairness Act (119th Congress)
Summary
H.R.1152, the Electronic Filing and Payment Fairness Act, amends the Internal Revenue Code of 1986 to apply the 'mailbox rule' to electronically submitted tax documents and payments. This means that the date of electronic submission will be considered the date of filing or payment, regardless of when the IRS receives it. The Secretary is directed to issue regulations by December 31, 2025, to implement these changes, which take effect for documents and payments sent after that date.
Expected Effects
This act will change how the IRS processes electronically submitted documents and payments. It will provide taxpayers with greater certainty regarding timely filing and payment, as the submission date will be the determining factor. The IRS will need to update its systems and procedures to accommodate this change.
Potential Benefits
- Provides certainty to taxpayers regarding timely filing and payment.
- Reduces potential penalties for late filing or payment due to IRS processing delays.
- Encourages electronic filing and payment, potentially reducing administrative costs for both taxpayers and the IRS.
- Simplifies tax compliance by aligning electronic submissions with the existing 'mailbox rule' for physical mail.
- Reduces potential disputes between taxpayers and the IRS regarding filing and payment dates.
Most Benefited Areas:
Potential Disadvantages
- May create a lag between the date of submission and the date the IRS processes the information, potentially affecting revenue collection timelines.
- Requires the IRS to develop and implement new regulations and systems, which could be costly and time-consuming.
- Could create opportunities for taxpayers to manipulate submission dates to their advantage.
- May disproportionately benefit those who are already comfortable with electronic filing and payment, potentially widening the digital divide.
- Requires ongoing monitoring and adjustments to ensure the system operates fairly and efficiently.
Constitutional Alignment
This act appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and fairness of the tax system. Specifically, the 'general Welfare' clause in the preamble allows Congress to enact laws that promote the overall well-being of the nation. By modernizing tax filing and payment procedures, the act seeks to reduce burdens on taxpayers and streamline government operations. There are no apparent conflicts with specific constitutional provisions or amendments.
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).