II. Explanation of the Bill
(Sec. 2004 of the Bill)
Under present law, taxpayers generally are required to calculate their own tax liabilities and
submit returns showing their calculations.
Reasons for Change
The Committee believes that it would benefit taxpayers to be relieved, to the extent feasible,
from the burden of determining tax liability and filing returns.
Explanation of Provision
The provision requires the Secretary or his delegate to study the feasibility of, and develop
procedures for, the implementation of a return-free tax system for appropriate individuals for
taxable years beginning after 2007. The Secretary is required annually to report to the tax-writing
committees on the progress of the development of such system. The Secretary is required to make
the first report on the development of the return-free tax system to the tax-writing committees by
June 30, 2000.
The provision is effective on the date of enactment.