Legislative Update - Discussion draft of tax administration reform, technical corrections proposals (Senate Finance staff) 

November 20:  Senate Finance Chairman Max Baucus today released a staff “discussion draft” containing proposals to simplify the administration of the tax system and to address tax fraud.

Yesterday, an international tax reform discussion draft was released. Tomorrow, the Finance Committee plans to release proposals to reform cost recovery and accounting.


Today's package of reforms includes a number of provisions aimed at modernizing tax administration and at reducing compliance burdens, tax-related identity theft, and the tax gap.


According to a one-page summary [PDF 198 KB], the tax filing-related reforms would:


  • Improve the information return filing process by (1) not requiring taxpayers to file corrected information returns if the error is less than $25; and (2) requiring returns generated by a computer but filed on paper to contain a scannable code, for more efficient uploading of return information by the IRS
  • Expand electronic filing by gradually reducing the number of returns that trigger an electronic filing requirement over a three-year period from 250 returns per year to 25
  • Repeal over 100 “deadwood provisions” and address a number of tax code provisions that need technical corrections

Other measures would address tax-related identify theft and other tax fraud prevention, and other provisions would aim to reduce the tax gap by requiring banks and insurance companies to report the existence of certain bank accounts and the sale of life insurance contracts, respectively.


Comments on the tax administration discussion draft are requested by January 17, 2014.

Documents

Documents posted on the Finance Committee website include:



Other documents available on the Finance website include:


  • A Joint Committee on Taxation (JCT) technical description of the proposals
  • A JCT list of technical corrections
  • A Finance staff list of “deadwood” provisions



©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-United States by year