4 ms·
Another issue, before we even talk about letting the IRS filing for you, is the amount of redundant paper work and mailing. Entities are required to provide yo
by Cshelton 12y ago
Another issue, before we even talk about letting the IRS filing for you, is the amount of redundant paper work and mailing.
Entities are required to provide your W2, or 1099, or whatever have you through the mail. They have to provide several copies as well.They still provide a 'send to the IRS with your return' copy, which is not required, but also redundant again by the amount of people electronic filing.
The flow of -> entity printing the documents -> mailing them -> individual then either entering in themselves or having somebody else prepare their taxes -> the information is, for the most part, entered into the computer via plane ole' data entry...by a person -> the return is e-filed to the IRS...who already has an electronic copy of said document...from the Entity that sent it to you...
Let's face it, before we even debate about letting the IRS just do it for us...let's at least get them to streamline the process. The IRS single handily keeps the Post Office in business, not to mention the cost and time/labor expense of the tax payers. (at least we get to deduct tax prep cost...if you can actually itemize..)
Let's get the basic forms first. The IRS should have an easier method of somebody getting the information about them that was sent in from entities electronically. Set up an API, I'm sure the NSA will let them use their server farms... This alone would probably eliminate the need for 80% of the population to ever have to file. All Capital gains will be in, unless the basis was not submitted to the IRS of course.
Now, I don't see a blanket, "The IRS will file your taxes for you" for everyone. Most people who have K1's or Sch C's, etc, will most likely need to make estimated payments. Many of the decisions on what to classify things and best place to 'deduct' them can become an art. But that is not going to apply to most people.
I've probably repeated some stuff in the article, I only skimmed it.