Bill > HR6458

This bill aims to improve the electronic filing process for employment taxes by requiring the Internal Revenue Service (IRS) to develop a fully-automated electronic filing system within one year of enactment. The bill recognizes that current paper-based tax filing methods are unsustainable and seeks to address both structural and behavioral obstacles to electronic filing. To encourage businesses to transition to electronic filing, the bill introduces two key mechanisms: a tax credit and a user fee. Employers who file employment taxes electronically for the first time will receive a $1,000 credit for one calendar quarter, with the option to claim another $1,000 credit in the following year. Conversely, employers who continue to file paper returns will be subject to a $250 user fee per submission. The bill provides exceptions for employers facing genuine challenges with electronic filing, such as those in rural areas with limited internet access or experiencing emergency situations. Importantly, the legislation includes safeguards to prevent abuse, such as recapturing credits if an employer reverts to paper filing and establishing procedures for waiving fees in certain circumstances. The bill does not apply to governmental entities and is designed to make electronic filing the most convenient and efficient method for meeting employment tax filing requirements.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6458/all-info