[Congressional Record Volume 142, Number 35 (Thursday, March 14, 1996)]
[Extensions of Remarks]
[Pages E369-E370]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 THE FAST AND EFFICIENT TAX FILING ACT

                                 ______


                          HON. CHRISTOPHER COX

                             of california

                    in the house of representatives

                        Thursday, March 14, 1996

  Mr. COX of California. Mr. Speaker, many Government rules and 
regulations now on the books are obsolete and just plain burdensome. 
Today, with bipartisan support, and in behalf of taxpayers across the 
Nation, I am introducing the Fast and Efficient Tax Filing Act to 
correct one of these obsolete regulations.
  Every April 15, thousands of Americans nationwide wait in long lines 
at the U.S. Postal Service to mail their tax returns and receive their 
registered mail receipts which prove that their documents were mailed 
on time. So even though the tax documents might arrive at the Internal 
Revenue Service 2 or 3 days after the due date, it is counted as being 
delivered on the date of the registered mail receipt. This is a good 
rule--it gives taxpayers peace of mind that they will not be fined or 
penalized if the Postal Service takes longer than expected to deliver 
the documents.
  However, like so many other things, the devil is in the details. This 
timely-mailing-as-timely-filing rule applies only to documents 
delivered by the U.S. Postal Service. So if the same taxpayer sent his 
or her tax documents on the due date via Federal Express, United Parcel 
Service, or some other reliable private delivery service, the timely-
mailing-as-timely-filing rule would not apply, and the tax documents 
would be considered officially late.
  The timely-mailings-as-timely-filing rule was written at a time when 
only the U.S. Postal Service delivered mail. Today, it doesn't make any 
sense to limit the timely-mailing-as-timely-filing provision just to 
documents delivered by the U.S. Postal Service when many alternative 
methods are much more reliable and quicker.
  The Fast and Efficient Tax Filing Act will correct this inequity by 
permitting the Secretary of the Treasury to expand the timely-mailing-
as-timely-filing rule to include qualified private delivery services. 
This would both increase the efficiency of the IRS and make it easier 
for taxpayers to file their tax returns on time.
  Mr. Speaker, I ask unanimous consent to introduce into the Record 
letters of endorsement for the Fast and Efficient Tax Filing Act from 
the National Taxpayers Union, the United Parcel Service, and even from 
a former IRS Commissioner.
  I invite my colleagues to cosponsor this important bill, so that we 
may make life a bit easier for millions of American taxpayers.

                                     National Taxpayers Union,

                                    Alexandria, VA, March 7, 1996.
     Hon. Christopher Cox,
     House of Representatives,
     Washington, DC.
       Dear Congressman Cox: The 300,000-member National Taxpayers 
     Union strongly supports your Fast and Efficient Tax Filing 
     Act, which would permit the Secretary of the Treasury to 
     designate qualified delivery services for purposes of timely 
     filing of tax documents with the Internal Revenue Service and 
     Tax Court.
       Many aspects of the Internal Revenue Code and its 
     enforcement seem outmoded and inconsistent, but few are as 
     archaic as the policy on the filing of tax documents. Few 
     taxpayers are aware of the fact that the IRS will only accept 
     a receipt from the U.S. Postal Service as evidence that a 
     document was delivered to the tax agency on time. Every year 
     many citizens have been placed in financial peril simply 
     because they made a reasonable assumption that a receipt from 
     a delivery service was adequate.
       With the onset of the Information Age, many national 
     delivery services have proven to be more reliable than the 
     U.S. Postal Service. Indeed, private companies from law firms 
     to financial industries often entrust Federal Express, United 
     Parcel Service, and many others to quickly deliver documents 
     upon which their livelihoods depend. Yet, current IRS policy 
     forces taxpayers to patronize the postal monopoly.
       Your legislation would also make the filing of important 
     documents more convenient for taxpayers who do not have easy 
     access to a Post Office, or do not have time to wait in long 
     lines for Registered Mail receipts. Private delivery firms 
     can provide the personalized, door-to-door service many 
     citizens prefer.
       A federal appeals court in San Francisco recently upheld a 
     lower court ruling that the judicial branch cannot compel the 
     IRS to recognize the receipts of reputable delivery services. 
     According to the ruling, while a taxpayer may ``put forth 
     what may be a legitimate policy rationale for extending the 
     rule to private delivery services, it is for Congress, not 
     the courts, to make such a change.''
       For this reason, taxpayers are now looking to Congress to 
     remove this onerous and pointless compliance burden. Congress 
     should modernize the tax filing law by enacting the Fast and 
     Efficient Tax Filing Act.
           Sincerely,
                                                    David Keating,
     Executive Vice President.
                                                                    ____



                                        United Parcel Service,

                                   Washington, DC, March 13, 1996.
     Hon. Christopher Cox,
     House of Representatives, Washington, DC.
       Dear Congressman Cox: United Parcel Service (UPS) strongly 
     supports passage of the ``Fast Efficient Tax Filing Act'' 
     with its goal of expanding the current timely-filing rule to 
     include private companies. The bill would not only allow the 
     Internal Revenue Service (IRS) to receive important documents 
     as promptly as possible but would provide the flexibility to 
     UPS customers to file their tax documents through a carrier 
     of their choosing.
       The information age has brought about a transformation in 
     the way business is conducted. Consumers are continuously 
     looking for new choices to meet their constantly changing 
     needs. UPS alone has over 1.3 million daily pick-up customers 
     and delivers nearly 12 million parcels and documents on a 
     daily basis.
       Private companies such as UPS present convenient and more 
     reliable alternatives to the Postal Service. UPS offers time 
     definite express services which would ensure the timely 
     filing of tax documents with the IRS. In addition, UPS has 
     the infrastructure and technology to track vital documents 
     through its system to the final destination. These are the 
     types of services taxpayers are looking for when dealing with 
     the IRS.
       The current IRS policy requires taxpayers to patronize the 
     Postal Service when filing their tax returns. This is not 
     only inconvenient for those who do not have easy access to a 
     Post Office, but it unfairly treats private sector companies 
     by creating an unlevel playing field between the Postal 
     Service and its competitors.
       A federal appeals court in San Francisco recently ruled 
     that there is a legitimate policy rationale for extending the 
     timely-mailing-as-timely-filing rule to private delivery 
     companies but left the matter up to Congress to resolve. The 
     time is ripe for reforming this unfair rule which does not 
     serve the needs of society. On behalf of all taxpayers, we 
     urge Congress to pass the Fast and Efficient Tax filing Act.
           Sincerely,

                                                Arnie Wellman,

                                                   Vice President,
     Corporate Public Affairs.
                                                                    ____


[[Page E370]]

                                             Skadden, Arps, Slate,


                                                Meagher & Flom

                                   Washington, DC, March 14, 1996.
     Hon. Christopher Cox,
     House of Representatives, Washington, DC.
     Re: Fast and Efficient Tax Filing Act
       Dear Congressman Cox: As a former IRS Commissioner, as a 
     tax practitioner, and as a taxpayer, I enthusiastically 
     support your proposed Fast and Efficient Tax Filing Act. The 
     change is long overdue--I only wish I had focused on the 
     issue and taken the step administratively while I was at the 
     IRS!
       Your proposal embodies the kind of real world, common sense 
     legislation that the tax system so desperately needs. While 
     the courts in Correia applied the law correctly, these are 
     precisely the situations that drive people up the wall and 
     destroy their confidence in government. You should be 
     applauded for your ongoing efforts to make the system work 
     better for citizens and taxpayers. If there is ever anything 
     I can do to lend a hand, please let we know.
           Sincerely,
     Fred R. Goldberg, Jr.

                          ____________________