Summary of HR 1152: Electronic Filing and Payment Fairness Act

Overview

Bill Number: HR 1152

Title: Electronic Filing and Payment Fairness Act

Status: Received in the Senate and referred to the Committee on Finance

Introduced: February 10, 2025

Classification: Bill

Purpose and Intent

The Electronic Filing and Payment Fairness Act aims to amend the Internal Revenue Code of 1986 to ensure that electronically submitted tax documents and payments are treated equitably compared to those submitted via traditional mail. The bill seeks to apply the "mailbox rule" to electronic submissions, meaning that the date of submission will be considered the date of delivery, regardless of when the IRS processes the document or payment.

Key Provisions

1. Application of the Mailbox Rule:

   • The bill amends Section 7502(c) of the Internal Revenue Code to include electronic filings and payments.
   • If a taxpayer submits a return, claim, statement, or payment electronically on or before the due date, it will be deemed timely, regardless of when the IRS receives it.

2. Regulatory Guidance:

   • The Secretary of the Treasury is required to issue regulations to implement this provision by December 31, 2025.

3. Effective Date:

   • The amendments will apply to any document or payment sent electronically after December 31, 2025.

Background and Need for Legislation

Currently, taxpayers who mail their payments benefit from the mailbox rule, which allows them to consider their payment timely if postmarked by the due date. However, those who file electronically may face penalties if the IRS processes their submission after the due date, even if it was submitted on time. This discrepancy creates an unfair disadvantage for electronic filers, despite the efficiency and cost-effectiveness of electronic submissions. In Fiscal Year 2023, over 213 million returns were filed electronically, highlighting the need for equitable treatment.

Impact

• Taxpayers: The bill will benefit individuals and businesses that file electronically by ensuring their submissions are treated fairly, reducing the risk of late penalties.
• IRS Processing: The legislation encourages timely electronic submissions, which can streamline IRS operations and reduce processing costs.

Legislative History

• Introduced: February 10, 2025
• Committee Action: The Committee on Ways and Means held a markup session on February 12, 2025, and reported the bill favorably.
• House Passage: The bill was passed by voice vote on March 31, 2025, after a debate period.
• Senate Action: Received in the Senate on April 1, 2025, and referred to the Committee on Finance.

Sponsors

• Primary Sponsor: Darin LaHood
• Cosponsors: Randy Feenstra, Suzan K. DelBene, Jimmy Panetta, Bradley Scott Schneider, Brian K. Fitzpatrick

Related Bills

• HR 1075: Companion legislation addressing similar issues.

This summary provides a comprehensive overview of HR 1152, detailing its purpose, key provisions, and potential impact on taxpayers and the IRS.