“Those information technology costs and other back office operations will consume more than 90% of the money Congress is giving the IRS for implementation. The same technology can be employed for almost all Form 1099 related transactions, which amount to over $1 billion a year, according to the IRS,” says Bergman.
“Blockchain and its digital ledger platform can revolutionise the way data is analysed, exchanged and stored by the IRS. It can help the IRS lower costs and increase security, as well as enhance the speed in which it accesses and reviews taxpayer data … and reduce fraud,” he says.
He concludes that “a digital ledger platform could let the IRS or other government regulators audit individuals or corporations in real-time, giving them instant access to financial or tax return-related data. Smart contracts technology can help the IRS manage and enforce settlement agreements with taxpayers, as well as manage various other agreements with individual and corporate taxpayers.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.