November 15, 2024 - Washington, D.C. – On Thursday, U.S. Senators Catherine Cortez Masto (D-Nev.) and Marsha Blackburn (R-Tenn.) introduced the Tax Administration Simplification Act to provide straightforward, taxpayer-focused improvements to streamline tax filing, and payment for individuals and small businesses.

Senator Catherine Cortez Masto (D-Nev.)

“I’ve heard from Nevada small businesses and workers about the challenges they face when filing their taxes, so I’m fighting to cut burdensome paperwork and streamline this process,” said Senator Cortez Masto. “This bipartisan legislation makes it easier for Nevadans to file taxes and avoid unnecessary penalties. Small businesses are driving our economic boom in Nevada, and I’ll continue working across the aisle to cut red tape and help them create more jobs in our communities.”

“Taxpayers shouldn’t be penalized when the IRS is delayed in processing their tax returns even though they submitted them on time,” said Senator Blackburn. “Our Tax Administration Simplification Act would shield taxpayers from unfair penalties, streamline tax filing, and provide more flexibility for small businesses.”

The Tax Administration Simplification Act aims to reduce filing burdens and make tax compliance more intuitive by:

• Protecting taxpayers from penalties due to Internal Revenue Service (IRS) delays in electronic filing – Under current law, even if taxpayers submit documents on the due date, they may be considered late unless submitted physically. The bill would extend the existing “mailbox rule” to electronically submitted documents, ensuring they are considered timely based on the date submitted, regardless of potential IRS processing delays. The correction would protect taxpayers from penalties and potential audits stemming from processing lags that are beyond their control.

• Simplifying S-Corp elections for small businesses – Many small business owners miss out on the tax benefits of “S-Corp” status because the current election deadline precedes the deadline for filing their first income tax return. The bill would allow business owners to make an S-Corp election on their first timely filed tax return, providing greater flexibility and reducing unnecessary penalties.

• Standardizing estimated tax deadlines – The bill would also address the confusing, irregular schedule for estimated tax payments, which currently requires payments at inconsistent intervals throughout the year. By moving to evenly spaced quarterly deadlines, the bill would simplify planning and help taxpayers more easily manage and project their income for accurate tax reporting.

Click HERE for bill text.

Senator Cortez Masto has consistently supported efforts to cut taxes and lower costs for hardworking Nevadans. She’s currently working to pass the No Tax on Tips Act to fully exempt tipped wages from federal income tax, and last year she cosponsored a resolution opposing the creation of a federal sales tax and calling for a tax cut for working families to grow the middle class. Senators Cortez Masto also helped introduce the Working Families Tax Relief Act to lower taxes for Nevada families by expanding the Child Tax Credit and Earned Income Tax Credit.
Source: Senator Catherine Cortez Masto