This bill — the 21st Century IRS Act — would seek to modernize technology at the Internal Revenue Service (IRS) and protect the identity of taxpayers. It would codify recent IRS efforts aimed at combating identity theft tax refund fraud through public-private partnerships, require the IRS to develop an internet portal allowing taxpayers to file 1099 Forms beginning in 2020, and allow the IRS to directly accept credit and debit card payments for taxes (as long as the taxpayer pays the fee).
The bill would also authorize the IRS to develop an automated system to request transcripts under the Income Verification Express Service (IVES) system. To cover the costs of developing it, the IRS would be authorized to assess and collect a separate user fee over a two-year period on all IVES requests.
The Treasury Department (which oversees the IRS) would be required to work with private industry to find ways to utilize new payment platforms and increase the amount of tax refunds delivered electronically.