H.R.1152 - Electronic Filing and Payment Fairness Act (119th Congress)
Summary
H.R.1152, the Electronic Filing and Payment Fairness Act, aims to amend the Internal Revenue Code of 1986 to apply the 'mailbox rule' to electronically submitted documents and payments to the IRS. This means that the date of electronic submission would be considered the date of filing or payment, regardless of when the IRS receives or reviews it. The bill requires the Secretary to issue regulations by December 31, 2025, to implement this provision, and the changes would apply to documents and payments sent after that date.
Expected Effects
The primary effect of this bill is to provide taxpayers with certainty regarding the timeliness of their electronic filings and payments. It eliminates the risk of penalties or interest due to delays on the IRS's end in processing electronic submissions. This change aims to modernize tax administration and align it with current technological practices.
Potential Benefits
- Provides certainty to taxpayers regarding timely filing and payment.
- Reduces the risk of penalties and interest due to IRS processing delays.
- Simplifies tax administration by aligning it with electronic submission practices.
- Encourages greater adoption of electronic filing and payment methods.
- Potentially reduces administrative burden for both taxpayers and the IRS.
Most Benefited Areas:
Potential Disadvantages
- Potential for disputes regarding the exact time of electronic submission.
- Requires the IRS to develop and implement new regulations and systems.
- Could create opportunities for fraudulent submissions if not properly secured.
- May disproportionately benefit those already using electronic filing and payment methods.
- Potential for increased burden on the IRS to verify submission times.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and fairness of tax administration. Specifically, the 'general Welfare' clause in the preamble suggests that the government should promote the well-being of its citizens. By modernizing the tax system and reducing the risk of penalties due to processing delays, this bill could be seen as contributing to the general welfare. The bill falls under the legislative powers granted to Congress in Article I, Section 8, which includes the power to lay and collect taxes.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).