Tax Code Overhaul Long Overdue

John Krautzel
Posted by in Accounting, Auditing & Tax


The complexities of the U.S. tax code are a regular joke around the office cooler in many accounting offices, but the code itself is long overdue for an overhaul. Come tax time, few accountants are laughing as they attempt to navigate the new changes to the extensive tax laws. Any mistakes made during the tax filing and payment processes could potentially be devastating for a small business, as the Internal Revenue Service audits companies regularly.

 

Remaining in compliance with the set of IRS regulations that govern any business operating in the U.S. is a key component of many accounting positions. Each year, the governmental body adds new lines to tax codes and changes others. Mistakes caused by failing to pay attention to these changes or understand existing tax law can result in fines and financial penalties. As an accountant, it falls on you to untangle the complexities of the tax code for your employer.

 

The IRS doesn't just govern business taxes. Many employers may turn to accountants and tax professionals to help reconcile their personal tax burdens. If you work in the field of tax preparation, the busy tax season is most likely when you make the majority of your income. Your time between tax seasons may be tied up in waiting for new tax code changes and attempting to understand those already introduced. This requirement places an undue burden on accountants year-round, and a simplification of the U.S. tax code could dramatically reduce the amount of man hours it takes throughout the year to deal with tax issues.

 

Some have noted that the complicated code also allows plenty of room for corruption and that the IRS may not even understand the tax code as written. Scandals occasionally emerge due to the way the organization handles the weighty matter of tax law enforcement. A clarification of the code could help reduce the number of loopholes and potential oversight concerns that lead to scandals and corruption. Codes that are easier for both laymen and tax professionals to understand are far more likely to be followed without the need for extensive oversight.

 

Accountants in the United States must always remain vigilant and understand the nuances of the tax code. Mistakes made during the filing process may have dramatic financial repercussions and lower business productivity. The system is ready for an overhaul due in part to its winding set of regulations that are difficult for even professionals to navigate. The information provided in the tax code can be vexing for both people and companies, and scandals or corruption may result from unclear laws and guidelines. A cleaner, simpler code could be a long-term solution to these issues.

 

(Photo courtesy of Grant Cochrane / freedigitalphotos.net)

Comment

Become a member to take advantage of more features, like commenting and voting.

Jobs to Watch