Bill 118 HR 3566, also known as the Simplify Automatic Filing Extensions Act, aims to streamline the process for obtaining filing extensions for certain tax forms. The bill proposes to automatically grant a six-month extension for filing certain tax forms without the need for taxpayers to submit a separate request for an extension.
The bill specifically targets tax forms that are commonly filed by individuals and small businesses, such as Form 1040 for individual income tax returns and Form 1120 for corporate tax returns. By simplifying the process for obtaining filing extensions, the bill seeks to reduce the burden on taxpayers and make it easier for them to comply with their tax obligations.
Proponents of the bill argue that automatic filing extensions will help taxpayers avoid penalties for late filing and provide them with more time to gather the necessary information to complete their tax returns accurately. They also believe that the bill will help reduce the workload of the Internal Revenue Service (IRS) by eliminating the need to process separate extension requests.
Opponents of the bill, however, raise concerns about the potential for abuse of automatic filing extensions and the impact it may have on tax compliance. They argue that automatic extensions could lead to delays in tax filings and reduce the effectiveness of the IRS in enforcing tax laws.
Overall, the Simplify Automatic Filing Extensions Act aims to simplify the process for obtaining filing extensions for certain tax forms and reduce the burden on taxpayers. The bill has garnered support from some lawmakers and tax advocacy groups, but it also faces opposition from those concerned about its potential impact on tax compliance.