4 ms·

They wouldn't, those people would have to file like usual. But the vast majority of filers (something like 90%) only have forms that the government already has

They wouldn't, those people would have to file like usual. But the vast majority of filers (something like 90%) only have forms that the government already has, and takes a standard deduction.

twoodfin 1y ago
Which forms does the IRS get when you separate from your spouse and the kids (aka dependents) move out, too? Does the IRS get a form when a child is born or dies? You could say, yes, the IRS should keep tabs on all this life activity, but that seems pretty gross.
- dotnet00 1y ago
  Aren't you literally reporting those events when filing the related tax implications? How is it gross for the IRS to know that when you have to tell them anyway to get the associated tax adjustment? You'd just report it the year that it starts to apply, and then your future filings would have that accounted for.
  - twoodfin 1y ago
    The premise was the IRS could send 90% of taxpayers pre-filled forms for approval & these would have a high degree of accuracy—if you have to go over them with a fine-toothed comb, what’s the point? I don’t know the % of Americans each year who have a tax-related event that isn’t already reported to the IRS, but given something like the complex eligibility rules for the widely-used EITC, or the number of folks paying back college loans, I’m comfortable saying it’s much higher than 10%. A ton of tax law is premised on who lived where for how long to determine primary residence. Many citizens—especially poorer ones—move a lot. The IRS should build reporting mechanisms to keep tabs on where everyone lives month-to-month? You can either simplify the tax code dramatically or increase massively the amount of preemptive reporting to the IRS. Otherwise this idea of the IRS divining the typical American’s tax obligations is unworkable.
- estimator7292 1y ago
  Those are rare events in any one individual's life. Even assuming those metrics aren't already reported to the IRS, you could still have them file manually when something exceptional happens. There's no reason that for most people in most circumstances couldn't have their taxes done automatically most years. Exceptions will always be the rule and our current processes handle them. That does not in any way exclude the usual cases.

They wouldn't, those people would have to file like usual. But the vast majority of filers (something like 90%) only have forms that the government already has, and takes a standard deduction.

twoodfin 1y ago

Which forms does the IRS get when you separate from your spouse and the kids (aka dependents) move out, too? Does the IRS get a form when a child is born or dies? You could say, yes, the IRS should keep tabs on all this life activity, but that seems pretty gross.

dotnet00 1y ago
Aren't you literally reporting those events when filing the related tax implications? How is it gross for the IRS to know that when you have to tell them anyway to get the associated tax adjustment? You'd just report it the year that it starts to apply, and then your future filings would have that accounted for.
- twoodfin 1y ago
  The premise was the IRS could send 90% of taxpayers pre-filled forms for approval & these would have a high degree of accuracy—if you have to go over them with a fine-toothed comb, what’s the point? I don’t know the % of Americans each year who have a tax-related event that isn’t already reported to the IRS, but given something like the complex eligibility rules for the widely-used EITC, or the number of folks paying back college loans, I’m comfortable saying it’s much higher than 10%. A ton of tax law is premised on who lived where for how long to determine primary residence. Many citizens—especially poorer ones—move a lot. The IRS should build reporting mechanisms to keep tabs on where everyone lives month-to-month? You can either simplify the tax code dramatically or increase massively the amount of preemptive reporting to the IRS. Otherwise this idea of the IRS divining the typical American’s tax obligations is unworkable.
estimator7292 1y ago
Those are rare events in any one individual's life. Even assuming those metrics aren't already reported to the IRS, you could still have them file manually when something exceptional happens. There's no reason that for most people in most circumstances couldn't have their taxes done automatically most years. Exceptions will always be the rule and our current processes handle them. That does not in any way exclude the usual cases.