If it weren’t for credits and deductions filing taxes would be easy. It’s the tax breaks that make it complicated. I can’t imagine the amount of extra personnel the IRS would need in order to track and account for every tax break a couple hundred million people qualify for.
I think a lot of people would have serious reservations about every aspect of their life being instantly and automatically added to a central government database. Yeah, pretty much everything you do is recorded by some government agency somewhere, but ONE agency knowing everything about everyone sounds like a privacy nightmare. Hackers breach ONE system and suddenly everything is out.
They don’t, though. The IRS doesn’t know where your kids go to daycare, or how much you’re paying for it, until you claim it as a deduction on your taxes.
They audit you, and you provide proof of what deductions you qualify for. If you say you paid $10,000 for child care, and you have paperwork from the daycare to prove it, then you’re good. If you said you paid $10,000 for child care and it turns out you don’t have any children, you’re kinda fucked. Same goes for things like charitable donations. The IRS has no idea that you donated to a cancer charity unless you claim it as a deduction. If they audit you, you’d better have proof of the donation.
If it weren’t for credits and deductions filing taxes would be easy. It’s the tax breaks that make it complicated. I can’t imagine the amount of extra personnel the IRS would need in order to track and account for every tax break a couple hundred million people qualify for.
It’s 2024, there’s no reason at all it shouldn’t all be automatic.
I think a lot of people would have serious reservations about every aspect of their life being instantly and automatically added to a central government database. Yeah, pretty much everything you do is recorded by some government agency somewhere, but ONE agency knowing everything about everyone sounds like a privacy nightmare. Hackers breach ONE system and suddenly everything is out.
They already have all the information, they’re clearly just mismanaging it.
They don’t, though. The IRS doesn’t know where your kids go to daycare, or how much you’re paying for it, until you claim it as a deduction on your taxes.
Then how do they “catch” people? The data is there or they couldn’t.
They audit you, and you provide proof of what deductions you qualify for. If you say you paid $10,000 for child care, and you have paperwork from the daycare to prove it, then you’re good. If you said you paid $10,000 for child care and it turns out you don’t have any children, you’re kinda fucked. Same goes for things like charitable donations. The IRS has no idea that you donated to a cancer charity unless you claim it as a deduction. If they audit you, you’d better have proof of the donation.
And how do they know to audit? Because they have the information already and they can make you a modern indentured servant if you can’t get out of it.
The reason is one half of our elected officials want the tax paying process to be as difficult as possible