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 would 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 it.
Expected Effects
The primary effect of this bill would be to provide taxpayers with certainty regarding the timeliness of their electronic filings and payments. It eliminates the risk of penalties or interest due to delays on the IRS end in receiving or processing electronic submissions. The bill also mandates the Secretary to issue regulations by December 31, 2025, to implement these changes.
Potential Benefits
- Provides taxpayers with assurance that timely electronic submissions are credited appropriately.
- Reduces potential penalties and interest charges due to IRS processing delays.
- Simplifies tax compliance by aligning electronic filing with traditional mail practices.
- Encourages greater adoption of electronic filing and payment methods.
- Offers convenience and efficiency for taxpayers in meeting their tax obligations.
Potential Disadvantages
- Potential for disputes if the electronic submission system malfunctions or records inaccurate submission times.
- Could create a need for increased IRS oversight to prevent abuse of the 'mailbox rule'.
- May require additional resources for the IRS to update its systems and procedures.
- Possible confusion among taxpayers regarding the effective date and implementation of the new rule.
- The regulations issued by the Secretary could introduce complexities or limitations.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and fairness of tax administration. Specifically, it falls under Congress's power to lay and collect taxes, as outlined in Article I, Section 8, Clause 1. The bill does not appear to infringe on any specific constitutional rights or limitations.
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).