Tuesday, January 31, 2017

Automated Income Tax Filing


To facilitate income tax processes, tax payers should have the option to have their income taxes automatically processed each year after initially registering for the service and providing all relevant information, i.e. demographic information, filing status, etc., on the Internal Revenue Service’s website, noting that the Internal Revenue Service should enable/allow income tax filing on its website...

Automated income tax filings would be processed after employers electronically send employees’ W2s to the Internal Revenue Service and/or their selected income tax preparation company. The IRS website and/or those of selected income tax preparation companies would process filings by automatically abstracting information from W2s and populating the applications with all requested information...

Employers could simultaneously mail W2s to employees in either electronic and/or paper form, or, in lieu of W2 forms, companies could mail employees a Statement of Filing, which would include a yearly earnings summary and/or all information provided in the W2, acknowledging that the employer or previous employer has electronically submitted exhibited information to the Internal Revenue Service...

Once automated income tax filings have been processed, a confirmation would be emailed to the tax payer for review and approval. Once approved, payments, if any, would be deposited into clients’ bank accounts and/or identified (presently held or requested) prepaid debit cards. 

Clients could elect to approve or edit their income tax filings, or they could elect an automated approval process that would either instantly approve a filing and/or refund once processed or that would automatically approve* a refund after a specified period of time without a response...

*It is ideal to start automated approval and deposits of refunds after a year in the prescribed program, or after processing of the first accurate and successful automated income tax filing/return or refund, and if there are no changes in essential information...

If any amounts are owed, clients would be capable of making payment arrangements via the IRS website and/or having specified installments deducted from their refunds and/or pay checks. If indebted* clients do not initiate payment arrangements, they would be subject to minimal default arrangements, i.e. $10.00 to $20.00 per paycheck or other income source...

*The term indebted here references tax debt; it could, however, include any and all other default debts that clients owe.

Clients who demonstrate financial hardship* would be capable of decreasing a minimal default arrangement, or the Internal Revenue Service could automatically make the adjustment based on any fluctuations in clients' earnings throughout the year, and when said fluctuations occur.

*If  it is determined that clients are not experiencing financial hardship a request to reduce a default minimal arrangement would be denied and/or clients might be required to pay more than the minimal default arrangement. Clients would, likewise, be capable of increasing a minimal default arrangement.   

Tax payers would be capable of editing or correcting errors after verifying their identity. The Internal Revenue Service and other tax preparation companies could create mobile and other apps for this purpose that enable review, approval, and/or editing via smartphones, tablets, etc. 

New hires could be enrolled into the automated income tax filing system during orientation processes and/or the Internal Revenue Service could enroll prospective applicants at local offices, optionally via provision of computer labs with published tutorials and human assistance.

Automated income tax filings should supersede traditional/manual income tax filing processes, and the Internal Revenue Service should mail notices to all tax payers regarding this change and regarding their need to officially register for the process.

Automated income tax filings would not only facilitate income tax filing processes, it would improve client safety and curtail identity theft and tax fraud. Tax evasion would be essentially impractical, and those who are in trouble with Uncle Sam would be reconciled...

The reporting of all other defaulted debts to the IRS, i.e. credit card debts, etc., owed by clients for the purpose of collection via automatic and affordable installments during income tax filing periods would help to get and keep clients out of all forms of debt, improve credit ratings, and avail financial privileges like lower or the very best interest rates on loans that would in many instances not have been obtainable at all...

Non-custodial parents who pay their child support should receive tax incentives; specifically, they should be eligible to receive or share earned income credit with custodial parents, and in proportion to the percentage of care that they have provided for their child(ren). 

There would be no need for concern about W2s being mailed to wrong addresses; if a company does not have a current address on an employee or previous employee, electronically submitting their W2 to the IRS would at least get them to the ultimate source that would likely have updated information for each individual.

Additionally, all persons would know that their W2s would be automatically sent to the Internal Revenue Service, and that they would only need to log in to their online IRS account to see them. Automated income tax filing would be a great way to make certain that everyone is paying taxes and/or receiving refunds who should be. 

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