The Internal Revenue Service (IRS) is seeking public comments on the information collection requirements related to passive activity losses and credits. This effort is part of their ongoing attempt to reduce paperwork and simplify processes in adherence to the Paperwork Reduction Act of 1995. The IRS is interested in feedback on the necessity and utility of the information collected, the estimated burden it places on respondents, and potential ways to minimize this burden, possibly through technological solutions. Comments must be submitted by March 24, 2025, and will help improve the procedure and ensure proper compliance.
Simple Explanation
The IRS is asking people to share their thoughts on how easy or hard it is to fill out forms about money you can't use to lower your taxes because it is "passive" (like owning a rental house). They're doing this to try to make the forms less complicated for everyone.