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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 anywa

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.