Policymakers to consider the costs and benefits of its proposed “real-time tax system.” Cost savings for individuals would likely be modest at best because most costs to filers stem from recordkeeping, checking and verification, and tax planning. Those costs would still exist in a real-time tax system. Costs for the government could substantially increase due to investment and staffing requirements of developing and managing new systems. Moreover, the IRS lacks the essential electronic processing capabilities and would face a range of challenges in carrying out new responsibilities.
