Posted: Jun 03, 2005 By: Don Hahn

Subject: IRS prepared tax bills

Comment: I am an AARP volunteer who assists elderly and others with their tax returns. I like the idea of IRA prepared tax bills provided the bills can be easily revised by the taxpayer. However, I am concerned that many taxpayers will think that they don't have chance to correct or revise their tax bills and will pay it even if it's wrong.
First, I think the tax bill should be labeled something like "estimated taxes" or "preliminary taxes" to avoid the impression that the amounts listed are final and not changeable.
Second, the tax bill should clearly state that corrections and additions should be made and are acceptable provided they are legal and could be supported by documentation. Another concern of mine is that the taxpayer who receives a tax bill from the IRS will in many cases wrongly assume that the bill is accurate for their situation and will not bother to check to see that it's appropriate for their situation for that tax year. Taxpayers should be told to check the bill and that it's their responsibility for it's accuracy.
Third, I think the taxpayer should have the option of completing their own return and not be foreced to use the tax bill. For example, taxpayers who normally have deductions would likely want to file their own return.
I look forward to any changes in tax returns that simplifies the process for both the taxpayer and the IRS.