Present Law

No specific provision.

Description of Proposal

Operations of the IRS computer systems are critical to the running of the Federal tax system. Accordingly, the proposal would provide that it is the sense of the Senate that the IRS should place resolving the century date change computing problems as a high priority.

Effective Date

The proposal would be effective on the date of enactment.

B. Tax Law Complexity Analysis

Present Law

Present law does not require a formal complexity analysis with respect to changes to the tax laws.

Description of Proposal

The IRS would be required to report to the tax writing committees annually regarding sources of complexity in the Federal tax laws. Factors the IRS may take into account include: frequently asked questions by taxpayers; common errors made by taxpayers in filling out returns; areas of the law that frequently result in disagreements between taxpayers and the IRS; major areas in which there is no or incomplete published guidance or in which the law is uncertain; areas in which revenue agents make frequent errors in interpreting or applying the law; impact of recent legislation on complexity; information regarding forms, including a listing of IRS forms, the time it takes for taxpayers to complete and review forms, the number of taxpayers who use each form, and how the time required changed as a result of recently enacted legislation; and recommendations for reducing complexity.

Effective Date

The proposal would be effective on the date of enactment.