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Yes, of course. Obviously if the IRS knows your income, knows you mortgage interest, interest on savings and dividends and it is all electronically recorded, th
by zw123456 10y ago
Yes, of course. Obviously if the IRS knows your income, knows you mortgage interest, interest on savings and dividends and it is all electronically recorded, there what is the point of filing. Only to keep accountants and tax software companies in business. I can guarantee you that if you file a return and copy the numbers in wrong from your W4 you will get a computer generated letter. I did that by accident once I transposed two digits in the amount on a 1099 and I got a letter from them that was computer generated. So obviously they are having computers check it, so what is the point of me wasting time and money on filing. The UK system (and many other countries) is obviously the way to go.
- sokoloff 10y agoEven on mortgages, the IRS doesn't have all the information. I refinanced my mortgage and paid points for the refi. Those points have to be amortized over the life of the loan (which the IRS knows the law, but doesn't know that I paid points on the loan). I just refinanced that mortgage again, meaning next year that I'll write off the rest of the points for the previous loan as a 2017 expense. There's plenty that the IRS doesn't know until you tell them.
- xienze 10y agoThat just sounds like a situation where the bank needs to supply information to the IRS for you so come tax time they already know about it.
- sokoloff 10y agoIt's an IRS issue, not a bank issue. Box 6 on form 1098 is for purchase/origination points only, not for refinance points. Refinance points (and you'd also need to know the refinance term) are not currently collected by the IRS.