4 ms·

Why anymore they already have a copy of everything my work, brokerages, and banks have.

• kube-system 3y ago
  W2s and 1099s are common, but they are a very small part of what someone could have on their 1040. If, as proposed above, we'd want to automate it without simplifying the tax code, there is way more information required. You'd need to know nearly every exchange of value that someone makes and why they did it. And they'd need to more closely track where people live, travel, work, etc.
  • jimmygrapes 3y ago
    FedNow seeks to facilitate adoption of these practices: https://explore.fednow.org/ https://explore.fednow.org/
    • kube-system 3y ago
      FedNow is for payments. That is a small subset of the information needed to determine someone's tax given the current landscape of credits and deductions.
    • butlerm 3y ago
      A generic link to the FedNow website doesn't even begin to substantiate your claim. To start with, where is there any evidence that FedNow intends to share any information about individual payments with the Treasury department? That is currently the legal responsibility of the financial institutions (for payments over a certain amount), not the ACH network. The ACH system doesn't have information like SSNs or EINs to associate with individual payments. Does FedNow have a plan to start gathering and requiring that information from depository financial institutions just to do a simple bank transfer?