A system would allow taxpayers to file their tax returns on a simpler form. System could reduce the amount of paperwork required to file tax returns. It would also reduce the number of people who would need to be notified if their returns were changed. The system would not require any changes to the tax law, but it would be easier to implement and maintain. The U.S. tax system is one of the most complex in the world. It is estimated that more than 100 million taxpayers file their returns each year.
IRS does not currently process information returns in sufficient time to send taxpayers their tax returns before the April 15 filing date. The 6-month interval occurs because of the amount of time it takes to process paper information returns, payer extensions for filing information returns and payee corrections to information returns. In a 1987 study, IRS found that a tax reconciliation system was not feasible then. The 1987 study indicated that with technological advances such a system could be feasible in the future.
Some taxpayers may not want to participate in such a system because they may not get their refunds as early in the tax filing season as they currently do. According to an IRS focus group conducted in 1993, taxpayers may be reluctant to rely on IRS to prepare their tax returns under a tax agency reconciliation system.
Auto55
GGD-97-6 Tax Administration: Alternative Filing Systems (gao.gov)