by Nate Wooley | April 4, 2013 10:17 am
A new proposal by the Internal Revenue Service would see the agency prepare most of each taxpayer’s return.
Under the proposal — which is being referred to as a “return-free” system — the IRS would fill in forms for taxpayers with the information reported over the year by employers, Investopedia reports.
The system is thought to be ideal for people with simple returns and few deductions. Taxpayers could receive the pre-filled forms and accept or correct it before sending it on to the IRS. It also could mean significant savings for these taxpayers as they would no longer have to spend the money to hire a professional or the time to prepare their own returns.
However, not everyone is certain it’s a good idea for all taxpayers. Anyone with significant deductions or any type of complicated tax situation would find themselves still doing a lot of work or having to have a professional prepare their returns.
There’s also the error factor to consider.
“The IRS is already quite error prone,” financial planner Jeff Camarda said. Camarda is concerned the agency will not catch its own errors and be unwilling to correct them later when taxpayers attempt to get them fixed.
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