Bill Overview
Title: Streamlining IRS Operations Act
Description: This bill requires the Internal Revenue Service to require that any tax return that is prepared electronically, but is printed and filed on paper, bear a code that can convert such return to an electronic format when scanned.
Sponsors: Rep. Porter, Katie [D-CA-45]
Target Audience
Population: Individuals preparing and filing tax returns
Estimated Size: 45000000
- The bill targets changes in the filing process of tax returns, specifically focusing on electronic returns that are filed on paper.
- It directly impacts those who prepare their returns electronically but choose to print and file paper copies with the IRS.
- Taxpayers who might not have access to digital submission or prefer paper filing due to technological discomfort are directly impacted.
- Also affected are tax professionals and preparers who handle a significant volume of returns, especially those doing mixed electronic and paper submissions.
Reasoning
- The policy specifically impacts individuals who prepare tax returns electronically but prefer or need to file paper copies with the IRS.
- The budget constraints suggest limited support for awareness campaigns or technological infrastructure enhancements, instead focusing on procedural streamlining.
- Considering cost constraints, the policy might not immediately address issues such as access to necessary technology for purely electronic submissions.
- The policy will likely have a varied impact depending on ease of access to electronic filing tools and acceptance of technology.
- Since a significant portion of the population still files paper returns due to various personal preferences or technological constraints, we need to include diverse demographics, such as the elderly or technologically challenged individuals.
Simulated Interviews
retired (rural Ohio)
Age: 67 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- I always file my taxes in paper form because I don't trust computers.
- I like having a physical copy of everything I do with my taxes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Accountant (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This could actually save me some time with data input next year.
- I hope this encourages more clients to switch to full electronic filing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Software Engineer (New York, NY)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- This doesn't affect me since I already file everything electronically.
- Seems like a smart step forward though for those who use paper.
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 | 7 | 7 |
Small business owner (Houston, TX)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- I hope this helps make the process less confusing.
- Technology can be challenging, but I want to get better at it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Retired teacher (Phoenix, AZ)
Age: 73 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 4/20
Statement of Opinion:
- I've always preferred paper, I guess this might speed things up.
- I'm cautious about moving to more tech, privacy concerns worry me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Freelance writer (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- Anything that reduces paper use is good in my book, but should have incentives.
- I am all for policies that help people transition to digital.
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 | 7 | 7 |
Middle school teacher (Miami, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I'm hoping this leads to a more straightforward process for my tax preparer.
- Paper is nice, but not if it's more hassle. We'll see what they recommend.
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 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
IT Specialist (Seattle, WA)
Age: 34 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- This will help older folks I know who don't file all online.
- Seems basic but could be quite useful for them.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Nurse (Dallas, TX)
Age: 58 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- Hopefully, this means less time dealing with paperwork in the future.
- If it makes things easier, I'm all for it, but change can be hard.
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 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Tax lawyer (San Francisco, CA)
Age: 50 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- If it reduces errors and speeds up processing, it's a win.
- Complexity in filing needs to be addressed, and this seems like a good step.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $10000000 (Low: $5000000, High: $15000000)
Year 5: $5000000 (Low: $3000000, High: $8000000)
Year 10: $2000000 (Low: $1000000, High: $3000000)
Year 100: $100000 (Low: $50000, High: $200000)
Key Considerations
- The bill will require significant initial technology investments to enable barcode scanning systems.
- Training IRS employees to use the new systems effectively will be crucial for successful implementation.
- Public communication efforts may be necessary to inform taxpayers about changes in filing requirements.
- Potential reduction in manual processing could free up IRS resources for other functions, including enforcement.