Bipartisan legislation proposed by U.S. Reps. Darin LaHood (R-IL) and Randy Feenstra (R-IA) to simplify the tax filing and payment processes is under consideration by the U.S. House Ways and Means Committee.
“As the Ways and Means Committee works to strengthen our tax code, it is important that we improve taxpayer rights and the administrative process to reduce burdensome filing challenges,” said Rep. LaHood, who sponsored the Tax Administration Simplification Act, H.R. 8864. “I am proud to lead this bipartisan effort and look forward to working with my Ways and Means colleagues to streamline the tax filing process.”
H.R. 8864, which Rep. LaHood introduced on June 27 alongside six original cosponsors, including Rep. Feenstra and U.S. Reps. Brian Fitzpatrick (R-PA) and Brad Schneider (D-IL), would apply the so-called mailbox rule to electronically submitted documents and tax payments to the IRS.
In turn, this would allow newly formed small businesses to elect to be treated as an S Corporation on their first tax filing, and revise the estimated tax payment deadlines to fall on quarterly intervals instead of the current irregular payment schedule, according to a bill summary provided by the lawmakers.
“As an advocate for tax reform, I’m focused on lowering taxes for our families and small businesses and helping Iowans and business owners more easily file their taxes,” Rep. Feenstra said on July 19. “I’m glad to work with my friend and fellow Ways and Means colleague, Rep. Darin LaHood, to introduce the Tax Administration Simplification Act to cut through red tape and simplify the tax filing process for our families and small businesses.”
The legislation, added Rep. Feenstra, would help eliminate “headaches” when filing taxes so that entrepreneurs and taxpayers can focus on serving their customers and caring for their families.
If enacted, H.R. 8864 also would incorporate recommendations from the National Taxpayer Advocate, build on previous legislation to streamline the tax filing process, extend the time for making S Corporation elections, and revise estimated income tax payment deadlines, among other provisions.