Bill Overview
Title: Autofill Act of 2022
Description: This bill requires the Internal Revenue Service (IRS) to establish a program to allow taxpayers to download forms relating to individual income tax returns that are populated with return information reported to the IRS. The IRS must make such return information available not later than 15 day after it receives the information and must make such information available in both a printable document file and in a computer-readable form suitable for use by automated tax preparation software.
Sponsors: Rep. Foster, Bill [D-IL-11]
Target Audience
Population: Individuals who file personal income tax returns
Estimated Size: 150000000
- The bill is aimed at simplifying the tax return process for individuals by allowing them access to pre-filled tax forms.
- The population primarily affected would be individuals who file personal income tax returns.
- In 2020, over 150 million tax returns were filed by individuals in the United States.
- By providing a pre-filled form option, the bill might encourage more accurate self-filing from individuals who otherwise rely on tax professionals, indirectly impacting tax preparers.
- Globally, the impact is less direct but could influence international firms providing tax services to U.S. citizens or residents.
Reasoning
- The policy aims to simplify the tax return process by providing pre-filled forms, potentially reducing the time and effort required for individuals to prepare their tax returns.
- The estimated cost of implementing this policy is substantial, but with the potential to impact up to 150 million individual tax returns each year.
- The largest impact is likely on individuals who traditionally struggle with tax filings due to complexity or lack of resources to afford professional tax services.
- Individuals with higher incomes who already use accountants might experience some convenience but not significant changes in their wellbeing.
- There is a potential indirect impact on tax preparers who may find demand for basic tax preparation services decreasing, leading them to focus more on complex filings.
- Wellbeing impacts are likely marginal yearly but could accumulate over time due to reduced stress and potentially increased accuracy in tax filings.
- Given the budget limitations, the implementation might be gradual, affecting only a subset of taxpayers initially, possibly those with simpler returns.
Simulated Interviews
Freelance Graphic Designer (Austin, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I dread tax season because it's always so confusing and I'm worried about making mistakes.
- If I could download pre-filled forms, it would save me a ton of time and anxiety.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Accountant (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This could reduce the number of people needing professional help for simple returns.
- I might need to focus more on complex cases, which is not a bad thing, but it could mean fewer clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Software Engineer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Pre-filled forms would be a nice convenience, making filing even faster for me.
- I already use software, so it's more of an incremental improvement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Cleveland, OH)
Age: 56 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I'm not very tech-savvy, so having pre-filled forms would be a great help.
- I still worry about whether these new systems are secure, though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
High School Teacher (Seattle, WA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- I always feel uncertain about deductions and tax laws changing.
- Having accurate, pre-filled forms would ease our mind a lot.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Small Business Owner (Dallas, TX)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- While I rely on my accountant for business taxes, it would be convenient for my personal return to be simpler.
- This might save me some money.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Semi-retired Consultant (Orlando, FL)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- I handle my taxes and appreciate tools that make them easier to understand.
- Pre-filled forms would likely help me manage my diverse income more effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Retail Worker (New York, NY)
Age: 26 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I've always struggled with the tax form process since it seems designed for people with more financial knowledge.
- This policy would make me more confident in filing correctly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Systems Administrator (Denver, CO)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- We use tax software and this would just make our annual filing that much quicker.
- It's a convenience rather than a necessity, but it's appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Marketing Specialist (Atlanta, GA)
Age: 31 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- I find doing taxes confusing and worry about missing out on deductions.
- Pre-filling forms can help ensure I don’t overlook important details.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $270000000 (Low: $250000000, High: $300000000)
Year 2: $180000000 (Low: $160000000, High: $210000000)
Year 3: $160000000 (Low: $140000000, High: $190000000)
Year 5: $150000000 (Low: $130000000, High: $180000000)
Year 10: $140000000 (Low: $120000000, High: $170000000)
Year 100: $130000000 (Low: $110000000, High: $160000000)
Key Considerations
- Initial setup costs are high due to technology and cybersecurity requirements.
- Ongoing operational costs are significant due to the need for real-time updates and compliance with evolving cybersecurity standards.
- Assumptions include significant taxpayer uptake and usage of the pre-filled forms.