ETAAC Presents Annual Report to Congress
On June 29, the Electronic Tax Administration Advisory Committee (ETAAC) held its public meeting and released its Annual Report to Congress. The report includes recommendations to improve electronic tax administration and combat identity theft tax refund fraud.
ETAAC’s report has five recommendations. Two recommendations are congressional; three are directed to the IRS. All of them are of interest to payroll professionals with Recommendation 5 having potentially the greatest impact on payroll.
Recommendation 5 states that: The IRS should work collaboratively with states and software providers to develop a long-term roadmap for Payroll and Information Return Modernization, leveraging its experience with Modernized e-file system (MeF), to provide capabilities that allow a seamless experience for all stakeholders using the systems.
The report acknowledges the “IRS has taken some steps forward,” including developing the 1099 portal, which will be available in 2023. The report also states that “the processes and systems for payroll and information returns need to be reimagined for a digital world.” ETAAC recommends the IRS work in partnership with states and the payroll industry to reimagine this world.
Complete coverage of the ETAAC annual report will be available in the August edition of Payroll Currently, published on August 5.
To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for the APA.