The President’s Advisory Panel on Federal Tax Reform has finally issued its report, and surprisingly, found the current tax system to be flawed and in need of some tinkering.
As part of our civic duty to assist the panel, we suggested that the IRS make an increased effort to comply with the Paperwork Reduction Act by eliminating the use of various tax forms (W·2s and 1099’s come to mind, for example). You would not have to rely on your employer or financial institutions to tell you how much income to report. You would be able to rely on your own excellent records and impeccable memory.
The IRS did not embrace the proposal with the enthusiasm we would have liked. The Service responded by returning our proposal with a publication on how 1o submit a proposal. To comply with the Paperwork Reduction Act, we were to complete f’orm 2746 (and related Schedules D, U, M and B) with copies to the President and 535 Senators and Congressmen. The President assumed it was a bill and automatically vetoed it. The others were out to lunch.
Should our proposal not be approved by the IRS (a remote possibility), we will remain open to assist ) you with any year-end planning. Please feel free to give one of our professionals a call.