Posted: Jun 03, 2005 By: MICHAEL M. HENDRIX

Subject: TAX REFORM

Comment: 1. THE IRS SERVICE HAS A GOAL TO GET EVERYONE TO FILE ELECTRONICALLY WITHIN THE NEAR FUTURE. THIS IS A GOOD GOAL BUT THE WRONG APPROACH. THEY NEED TO GET ACCOUNTANT ON BOARD WITH THEM. CURRENTLY WE PURCHASE THE ELECTRONIC FILING SOFTWARE, MY COST IS APPROXIMATELY $1022. IT IS UNREALISTIC TO EXPECT ACCOUNTS TO ABSORB THIS COST OR SPREAD OVER OUR ENTIRE CLIENT BASE. THOSE THAT USE IT SHOULD PAY AND THIS COST SHOULD NOT BE APPLIED TO OTHER WHO DO NOT USE IT. CONSEQUENTLY WE CHARGE $20 A RETURN FOR ELECTRONIC FILING. EVERYONE WOULD DO IT IF THE GOVERNMENT WOULD GIVE A TAX CREDIT ON THE RETURN OF A SIMILAR AMOUNT.

2. IN DIVIDUALS WITH A BALANCE DUE WILL NOT FILE ELECTRONICALLY AS THEY DO NOT LIKE THE GOVERNMENT TAKING MONEY OUT OF THEIR ACCOUNT. WHY NOT LET THESE PEOPLE FILE ELCTRONICALLY AND SEND THEIR VOUCHER IN WITH THE PAYMENT ON FILING DATE.

3. NO DEDUCTION FOR MORTGAGE INTEREST IS NOT FAIR FOR YOUNGER 2 INCOME FAMILIES. THESE PEOPLE RELY ON THE DEDUCTABLE OF THE MORTGAGE INTEREST AND TAXES TO SUBSIDIZE THE MORTGAGE PAYMENT. THESE TYPES OF FLAT TAX VARIATIONS ONLY HELP THE VERY RICH. IT IS MY EXPERENCE THAT THEY (RICH INDIVIDUALS) WILL NOT REINVEST IT THE ECONOMY BUT IN TAX FREE AND SAFE INVESTMENTS.