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13 States join the IRS direct-file test after tax prep firms dropped the ball

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Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#191

Earlier quoted context omitted.

>The anti-tax activists think that if taxpaying is too easy, voters will be less likely to resist the federal government’s growth. Both want to make it as painful as possible for you to do your taxes yourself. This sounds a lot like the logic the US government uses with regards to normalizing relations with Cuba. They think that by keeping up an embargo, that the Cuban people will rise up and overthrow their communis…

Are you trying to tell me sanctions don't work? That's absurd. Clearly the war in Ukraine is due to sanctions working.

Sanctions haven't changed the regime in Cuba for over 60 years.

The big problem with sanctions is that they aren't applied completely. The US refuses trade with Cuba, but many other countries don't, so they aren't effective. The same is true with Russia: lots of countries (like China) still trade with them, and many more still buy their oil/gas.

Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#192

In the 8 years since I lived in the United States my income taxes in other countries have been almost unbelievably easy. Typically I look at the calculated amount provided by a government website, compare it to what I think it should be if there is done discrepancy, upload some receipts or whatever for deductions, then click submit. It is beyond me why the experience should be any how different in the United States.…

In Brazil step number one of paying your taxes is: "Install the Java JRE"

(it is a desktop Java application made ~20 years ago)

and from all I hear it is still MUCH better than doing your US taxes

(to be fair the application is actually decent, just using outdated tech)

Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#193

Earlier quoted context omitted.

True, but the same is also true if a tax preparer makes a mistake. Also, the IRS almost always waives penalties (and often interest) unless they think it wasn't an honest mistake. I'm not bothered by this risk. If a mistake is made and I owe additional taxes, then I'll just pay what I owe. No biggie.

I mean, that is a hell of a life choice, but I guess if you assume that the government is always honest (see the Iraq war and many other things) and the IRS always interprets the documents they receive correctly (which they don't today - I have gotten letters from them which are blatantly wrong), that sounds good. I understand that an hour is valuable, but that hour you spend checking your tax documents may be the hi…

> that is a hell of a life choice

This implies that I'm taking some huge risk or would be absurdly overpaying my taxes or something. I don't think either of those things are true. In the larger picture, this isn't really that big of a deal.

> I guess if you assume

I assume none of those things.

> that hour you spend checking your tax documents may be the highest-leverage hour of work you do that year.

It would be more than an hour, but the time isn't even the biggest issue. The biggest issue is the stress, worry, and hassle. It's just a basic cost/benefit calculation here, no different than other cases where I accept a level of increased expense or some risk because it costs more than I'm willing to pay to mitigate it. I have bigger fish to fry than this. Micromanaging this would reduce my overall happiness by adding an additional thing to worry about.

Everyone's cost/benefit calculation is different, of course, and if yours indicates that you'd be better off being more diligent about this stuff, that's entirely fair as well.

Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#194
post #57

Earlier quoted context omitted.

I am not really comparing tax system, or at least that isn't the intention. The Swedish tax system is easy as long as you stick to those accounted for benefits. Say if you make a $100k a year and you pay social security for public pension among other things but public pension only gives you credit up to $50k a year. Now if you have a big house you can deduct renovations so your income is for tax purposes is, say, $75…

Tax deduction for renovations is $5k per year ($7.5k next year). Or well, less now that 1 USD is 11 SEK instead of 10. You make it sound like you can just start a company and hire yourself, and the biggest drawback would be more complicated taxes... No, the biggest drawback is that you're starting a business and taking a (much) larger risk than being employed. Hiring an accountant to help with the bookkeeping is a mi…

[flagged]

Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#195

Earlier quoted context omitted.

Here here! And, that is honestly the best. It’s why we have a republic and not a “pure democracy”. Nobody likes taxes, but other than having to interface with the system once a year… who cares ? I can pay H&R Block $X or pay $Y more in taxes. Whoopie!

> I can pay H&R Block $X or pay $Y more in taxes. I'd much rather my money go to the government than to tax preparers, though.

On what planet is it better to give money back to The Government rather than back into the economy?!

Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball

#196

Earlier quoted context omitted.

Here here! And, that is honestly the best. It’s why we have a republic and not a “pure democracy”. Nobody likes taxes, but other than having to interface with the system once a year… who cares ? I can pay H&R Block $X or pay $Y more in taxes. Whoopie!

/s, perhaps? Summed across the whole economy, the total $X being paid to America's "Tax-Industrial Complex" is vastly more than the total $Y that it'd cost to have an efficient government-run system.

“Tax-Industrial Conplex”?! If you had something to say, it’s now lost behind your rhetoric. "Eisenhower's farewell address to the nation" does not commute to H&R Block. This is a foolish misquote that absolutely reeks of an appeal to (false) authority. I also disagree that a new government tax program would be more efficient than the established market-rate tax preparation businesses. Let alone vastly more efficient. Magical thinking doesn’t help anyone solve anything.
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