Could the end of tax return preparation — or so-called
"tax season" for accountants — really happen? Or to
paraphrase Mark Twain, is the demise of the income tax return
greatly exaggerated? Technology is an amazing thing. As governments
continue to expand data collection and improve their use of
technology, it is not beyond the realm of possibility that the tax
return could evolve into something very different than it is today.
So, while the income tax return certainly isn't dead yet, its
demise may be in the not-so-distant future.
In March 2015, the UK's tax administrator, HMRC, released a
discussion document titled Making tax easier: the end of the tax return.
The document outlines a bold vision for all UK taxpayers, including
small businesses, to have digital accounts. Given that HMRC has
access to much data, the document outlines thoughts to make smarter
use of that data with a plan to essentially eliminate the personal
income tax return.
