Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comThe Firm
201-896-4100 info@sh-law.comTax simplification has been a popular topic around Washington recently. But on April 13, Sen. Elizabeth Warren, D-Mass., introduced legislation that may take a big step toward it. According to a CPA Practice Advisor report, the “Tax Filing Simplification Act of 2016,” would require the IRS to create a free service online for tax preparation and filing.
This would involve the IRS preparing tax returns for taxpayers, which would effectively eliminate tax returns. In turn, taxpayers would still be allowed to send the IRS tax information provided to them by a third party prior to the completion of their returns.
Warren’s bill was co-sponsored by Sen. Bernie Sanders, I-Vt., Sen. Sheldon Whitehouse, D-R.I., Sen. Tom Udall, D-N.M., Sen. Jeanne Shaheen, D-N.H., Sen. Al Franken, D-Minn., Sen. Tammy Baldwin, D-Wis., and Sen. Edward Markey, D-Mass.
Warren argued in a statement that the bill was proposed to eliminate peoples’ reliance on the tax preparation industry to complete their tax returns.
“Congress should be making it easier for Americans to file their taxes each year, not bowing to the interests of the tax prep industry,” Warren commented in the statement. “The Tax Filing Simplification Act is a commonsense bill that would help taxpayers all across this country file their taxes with less stress and fewer costs, and it would push the IRS to use the authority it already has to simplify Tax Day for all Americans.”
Furthermore, Warren released a report with the proposed bill that showed the costs incurred by taxpayers in filing their returns with third parties. There was also an element of danger in sharing personal proprietary information with private third party companies. This was a point highlighted with the Free File Alliance as an example.
The Free File Alliance is a network of tax software vendors that partners with the IRS. But Warren argued that it is only used by 3 percent of taxpayers and offers several – and potentially unnecessary – products to unwitting taxpayers.
Opposition to the bill argued that it is an attempt to remove representation for taxpayers. It would effectively put taxpayers in direct contact with the IRS. Other detractors supported this point by explaining that there is a general lack of trust in the IRS. Perhaps the most vocal lobbies yet to comment on the bill are the Republicans in Congress and tax product vendors, who stand to lose the most.
The Free File Alliance has initially objected to the proposed legislation and Warren’s follow-up report findings. It pointed out that the bill would put the IRS as a single entity responsible for tax preparation, collection, auditing and enforcing.
The proposal has great significance for tax practitioners. Despite the fact that tax planning will still be an option for taxpayers, the legislation would dramatically change the tax preparation industry as we know it.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!