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Tax Administration: Alternative Filing Systems
Ralph Block & Kathleen Seymour. There are two types of alternative tax filing systems found in other countries. In the “tax agency reconciliation” system the taxing authority prepares the return for the taxpayer. In the “final withholding” filing system” the taxpayers’ income tax is withheld at the source & remitted to the tax agency by employers & other payers who are responsible for withholding taxes that equal but do not exceed each taxpayer’s liability. This report determines the benefits, impediments, & costs to individual taxpayers, IRS, & others of establishing a tax agency reconciliation filing system under existing federal laws in which taxpayers could participate. Charts & tables.
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