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What a ridiculous take. Use of the software wouldn't be compulsory. The IRS already (mostly) knows what the payer owes.

by ellisv 3y ago

sokoloff 3y ago
There are two problems with that: The one that affects most people is that the IRS system is "eventually consistent", but they do not currently have the information needed to file your return on the date your return is due. If you don't believe me, request your transcript-of-records* on your account filing date. Then request it again in early fall. The latter will, IME, be complete while the former will not. * - https://www.irs.gov/individuals/get-transcript https://www.irs.gov/individuals/get-transcript The one that affects only a subset of people is that many deductible items that go into tax returns are never shared with the IRS at all and only the taxpayer knows about them (today).
- jedberg 3y ago
  You're technically correct, but in most cases the date the original form was filed with the IRS was around the deadline. It just takes them a while to upload them all. But we could also just make the filing deadline October for individuals. Most of those late arriving forms are K1s for partnerships that only file in April.
JohnFen 3y ago
Technically, the use of the software isn't compulsory. You can still fill out the physical tax forms and mail them in. That said, I am solidly on board with the IRS just computing the taxes for taxpayers and sending them a bill. Taxpayers who dispute the bill can then just file their own taxes as normal.
- ellisv 3y ago
  The IRS will always need some info from the tax payer.
  - snotrockets 3y ago
    All your financial transactions are already reported by the other parties (including most foreign ones: I have an offshore account that reports to FATCA). Your personal data (age, dependents, marriage) is also in databases recording births and status changes. For most filers, that's all you need.

What a ridiculous take. Use of the software wouldn't be compulsory. The IRS already (mostly) knows what the payer owes.

by ellisv 3y ago

What a ridiculous take. Use of the software wouldn't be compulsory. The IRS already (mostly) knows what the payer owes.

There are two problems with that: The one that affects most people is that the IRS system is "eventually consistent", but they do not currently have the information needed to file your return on the date your return is due. If you don't believe me, request your transcript-of-records* on your account filing date. Then request it again in early fall. The latter will, IME, be complete while the former will not. * - https://www.irs.gov/individuals/get-transcript https://www.irs.gov/individuals/get-transcript The one that affects only a subset of people is that many deductible items that go into tax returns are never shared with the IRS at all and only the taxpayer knows about them (today).

jedberg 3y ago
You're technically correct, but in most cases the date the original form was filed with the IRS was around the deadline. It just takes them a while to upload them all. But we could also just make the filing deadline October for individuals. Most of those late arriving forms are K1s for partnerships that only file in April.

JohnFen 3y ago

Technically, the use of the software isn't compulsory. You can still fill out the physical tax forms and mail them in. That said, I am solidly on board with the IRS just computing the taxes for taxpayers and sending them a bill. Taxpayers who dispute the bill can then just file their own taxes as normal.

ellisv 3y ago
The IRS will always need some info from the tax payer.
- snotrockets 3y ago
  All your financial transactions are already reported by the other parties (including most foreign ones: I have an offshore account that reports to FATCA). Your personal data (age, dependents, marriage) is also in databases recording births and status changes. For most filers, that's all you need.