Posted on July 26, 2004
WASHINGTON - U.S. Sen. Lamar Alexander (R-TN) today announced that he will co-sponsor S.2502, the "Simple Tax for Seniors Act of 2004." The bill allows senior citizens to file their federal income tax on a new form, a 1040S. Currently, seniors cannot use the IRS short form, 1040EZ, to file their income tax returns because it does not have a place to report retirement income. As a result, an estimated 11 million seniors must file the standard 1040 form. "This bill is a win-win. It makes it easier for our seniors to file their income taxes and easier for the IRS to process those forms—not to mention it doesn't cost American tax payers one red cent," said Alexander. "I am proud to support this bill that will alleviate a needless burden for millions of senior citizens." The IRS estimates that the cost of handling the standard 1040 form is 50 percent higher than the 1040EZ. The cost savings from processing the shorter forms would offset the implementation costs, making this a budget neutral bill. The legislation requires the IRS to develop a new form, a 1040S, which would allow seniors to file a much simpler tax form tailored to their needs. The bill does not change the federal tax code. Seniors would pay the same tax amount that they would have by filing the standard 1040. The House of Representatives unanimously passed the companion bill, H.R. 4109, in June. Sponsors of S.2502 include: Sens. Larry Craig (R-ID), John Breaux (D-LA), John Ensign (R-NV), Tom Harkin (D-IA), Harry Reid (D-NV) and Ted Stevens (R-AK).