Wednesday, September 23, 2009

Changes to Tax Filing…Coming Soon

While going through my moring e-mail news I came across some interesting information that islikely to affect everyone who files taxes. According to a report by the Treasury Department’s Inspector General for Tax Administration (TIGTA) they recommend that mandatory electronic filing of individual tax returns by professional tax preparers become a requirement by law. Currently about 43% of the returns filed are filed on paper (for tax year 2008). The IRS feels that by mandatory electronic filing of individual returns, the error rate for returns can be lowered and the IRS can operating more efficiently. The IRS will also begin using scanning technology to convert paper returns to electronic format.

What doe this mean to you?

More than likely if the law is passed, it will mean that the IRS will cut back some of their staff, those paper retuns that have errors will be caught faster with scanning technologies, and those professional tax preparers that do not want to embrace technology may have to look for other ways to bring in more revenue. The IRS is currently asking Congress for authority to make these changes as part of their 2010 fical year budget, so the changes are right around the corner.

B. N. S.

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