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    IRS-Prepared Tax Return

    March 03, 2009

    I just sent this to Washington using Congress.org:

    In his March 3, 2009 testimony before Congress, Secretary Geithner testified that one of the Obama Administration’s tax reform ideas is to have the IRS fill out a tax form for taxpayers.  Mr. President, I would urge you to reconsider this idea.

     First, such a plan would place a tremendous burden on an already overburdened Internal Revenue Service.  A programmed template, or “cookie cutter” approach would be of limited help since each taxpayer situation is different.  This fact is exemplified by the fact that tax preparation even using popular software is an interactive process.  In even the best case, the IRS product would probably reflect a worst-case scenario for the taxpayer.

     Second, requiring the IRS to produce the taxpayer’s return would also require the taxpayer to review the return as to how it was prepared and determine if modifications are necessary.  In essence, this would require the taxpayer to produce the return anyway and reconcile it to the IRS product.  This places an untenable burden on the taxpayer.

     Even as simple as the Reagan “flat tax” was in concept, it was unworkable in practice, partly because taxpayers were reluctant to lose pet deductions and credits, and mostly because Congress and the Administration would have lost a primary social engineering tool.  Not every answer has to be complex, but simple answers can rarely solve complex problems.  Respectfully, the Tax Code needs a simplification overhaul by experts, not by politicians.

     Mr. President, at this critical time in our history, I know your time is even more valuable.  I hope you take time to read citizen comments made via Congress.org and thank you if you have read my comments.