A recent article in The Plain Dealer addressed a contentious issue that has been circulating for years: with the steady rise of tax-evasion and identity theft, should the Internal Revenue Service be the one to prepare returns for taxpayers?

This “real-time tax system” would implement several changes in the way tax returns are handled:

• Information from employers, banks, investment firms and others would be fed electronically to the IRS throughout the year, perhaps every quarter.
• Sometime after Dec. 31, that information would be compiled and matched with Social Security numbers.
• The IRS would then prepare income tax returns for everyone and send out a pre-completed return detailing how much you will get back or how much you owe.
• If you do not agree with this amount, you could challenge the IRS.

While many would argue the current income tax return filing system is not ideal – over $400 billion of owed taxes are left undeclared every year, while $5 billion is refunded to identity thieves – it may not be in the best interest to change its structure in such a dramatic fashion.

“You have to use a scalpel where appropriate, not a sledgehammer,” said Howard Kass, CPA and Zinner & Co. Tax Partner, who was quoted throughout the article.

Any movement towards this system could potentially cause unpopular changes, including a staggered filing system and delays in refunds, not to mention a feeling of unease caused by the IRS being both the tax preparer and collector.