Overview
Title
To amend the Internal Revenue Code of 1986 to provide for the application of the mailbox rule to documents and payments electronically submitted to the Internal Revenue Service.
ELI5 AI
H.R. 1152 is about making a rule that says when someone sends a form or money to the tax office online, the day they send it is counted as the day it arrives, even if the tax office gets it later. This change is like saying, "If the mailman gets your letter today, it's like the person got it today too."
Summary AI
H.R. 1152, titled the "Electronic Filing and Payment Fairness Act," aims to change the Internal Revenue Code of 1986 by applying the mailbox rule to electronic submissions. This would mean that when individuals or businesses send required documents or payments to the IRS electronically, the date they send it is considered the official date of delivery or payment, regardless of when the IRS receives it. The act requires the Secretary to provide necessary regulations or guidance by December 31, 2025, and the changes would apply to documents or payments sent electronically after this date.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the "Electronic Filing and Payment Fairness Act," seeks to update the Internal Revenue Code of 1986. The bill introduces the "mailbox rule" for documents and payments electronically submitted to the Internal Revenue Service (IRS). Under this rule, electronic submissions to the IRS will be considered as delivered or paid on the date they are sent, not the date they are received. This change is set to apply to any documents or payments sent after December 31, 2025, contingent on the IRS issuing necessary regulations by the end of that year.
Summary of Significant Issues
A major concern with the bill is its assumption that electronic submissions will always be successfully transmitted without technical glitches. The absence of provisions for unforeseen technical failures could lead to significant legal and financial complications. Furthermore, there is a lack of detailed guidance on how disputes over electronic submission dates might be resolved. The bill also requires the IRS to issue new regulations by December 31, 2025, leaving a narrow window for both the IRS and taxpayers to adjust, risking confusion and potential implementation problems. Additionally, the bill does not address cybersecurity issues that could arise from electronic submissions, an important consideration given current concerns about data security.
Impact on the Public
The bill could broadly impact the public by streamlining electronic communications with the IRS, potentially simplifying the filing process by making it more predictable when determining delivery or payment dates. This can be particularly beneficial for taxpayers who rely heavily on electronic transactions and enables them to avoid penalties related to late submissions. However, the lack of provisions for technical failures and cybersecurity risks could pose challenges, since many individuals and businesses depend on electronic systems that may occasionally fail.
Impact on Specific Stakeholders
Taxpayers - For the general taxpayer, the change can offer greater convenience and certainty in the filing and payment process. However, the lack of established channels for resolving submission disputes or failures could present difficulties if issues arise. The short lead time for the implementation of new regulations may also create uncertainty.
IRS and Treasury Department - The IRS will need to prepare for these changes quickly, which could strain resources, especially if the new rules aren't clear or leave unresolved issues. Additionally, ensuring robust cybersecurity measures may require significant investment and deployment of secure technology infrastructure.
Technology Providers and Consultants - Firms providing tax management solutions and consulting services might see increased demand as taxpayers seek to ensure compliance with the new electronic submission requirements. Nonetheless, they will also have to address potential system vulnerabilities to prevent data breaches and other security issues.
In conclusion, while the bill aims to improve the IRS's electronic submission process and offer greater convenience to taxpayers, it also presents challenges in terms of system reliability, security, and implementation timelines. Stakeholders will need to prepare adequately to balance these benefits and risks effectively.
Issues
The bill assumes flawless electronic submission of documents and payments to the IRS, without addressing potential technical failures and their resolutions, which could have significant legal and financial implications if not addressed clearly. (Section 2)
There is a lack of provisions for handling submission confirmations or disputes over electronic submission dates, leading to potential legal and procedural issues. (Section 2)
The regulation issuance deadline of December 31, 2025, leaves very little time for the IRS and taxpayers to prepare for the new rules, risking confusion and implementation issues. (Section 2)
The absence of guidance or exceptions in the language concerning the 'date of delivery or the date of payment' being deemed the date sent could lead to discrepancies or misuse, important for financial accountability. (Section 2)
There is no discussion of cybersecurity risks associated with electronic submissions, which is critical given increasing concerns over data breaches and the protection of taxpayer information. (Section 2)
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill states that the official name of the Act is the “Electronic Filing and Payment Fairness Act.”
2. Application of mailbox rule to documents and payments electronically submitted to the Internal Revenue Service Read Opens in new tab
Summary AI
The text amends the Internal Revenue Code to apply the "mailbox rule" to electronic submissions, meaning that documents and payments sent electronically to the IRS will be considered delivered or paid on the date they are sent, not the date they are received. These changes will take effect for any documents or payments sent after December 31, 2025.