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IRS to begin trial of its own free tax-filing system

nytimes.com

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Re: IRS to begin trial of its own free tax-filing system

#121

Post by viraptor »

proc0 wrote: post #103
mjamesaustin wrote: post #82

Earlier quoted context omitted.

IRS funding is objectively efficient. Every additional $1 spent on IRS budget brings in $5-9 of additional funding through enforcement. https://www.cbo.gov/publication/57444

The efficiency bar has to be particularly low when you consider that it is enforced by law. What incentives do they have to do anything differently when people HAVE to pay them or face consequences. I'm glad they are at least now trying to have a semblance of customer service awareness.

It's not that easy. The efficiency is actually a benefit for many private companies and it's lobbied very hard. Just look at a comparison with other countries that are also restricted by law and have much nicer systems.

Re: IRS to begin trial of its own free tax-filing system

#122

Post by a123b456c »

whakim wrote: post #86
hackernewds wrote: post #70

Earlier quoted context omitted.

[flagged]

This claim is not correct in several ways. The $80B was not earmarked for hiring agents; that was an additional $80B for the entire agency spread over 10 years. While some of that money might be used to hire additional agents, it will also be used to upgrade old technology (the IRS still uses software from the 1950s), make fixed capital investments that have been long-deferred, regulate third-party tax preparers, pro…

I appreciate your corrections and agree with all of them.

Yet they do not imply IRS is operating efficiently, as efficiency is left undefined.

If we're talking about social efficiency, the tax code appears massively inefficient to me. I believe the tax code should be redesigned to reduce that inefficiency. That may obviate many IRS needs for resources.

Re: IRS to begin trial of its own free tax-filing system

#123

Post by rdiddly »

fsmv wrote: post #78
practicemaths wrote: post #44

I just file my taxes by hand and mail it in. Somewhat less concern with 3rd parties holding my information and losing it to leaks/hacks. It is free. A little obnoxious but the forms do have instructions/directions.

I heard that this sometimes takes them much longer to process the returns that way. Has that been your experience? One time I reproduced the forms in a spreadsheet following the instructions and it wasn't much different from doing the online wizards. I would have liked to mail it in but I just paid to e-file anyway.

If you're looking for a fast turnaround I would recommend filing earlier in the period -- like as far in advance of April 15th as possible, i.e. as soon as you have all your supporting materials. As you get closer to April 15th, you are non-linearly further back in the queue.

I can't really make an authoritative comparison of filing methods because I'm mostly a die-hard paper filer and have only ever e-filed maybe twice in my life at most. And it was long enough ago that I barely remember, and in fact never really cared, how fast my refund arrived. I embrace and savor the luxury of simplicity. When will my refund arrive? Answer: sound of one hand clapping. It's a reminder I put in the calendar for like, mid-June, to the effect of "Hey did I get my tax refund yet?" Usually the answer's, yep, and you dismiss the reminder. I can't be arsed (as they say in the UK) to be more interested in it than that.

Re: IRS to begin trial of its own free tax-filing system

#124

Post by gameshot911 »

eddd-ddde wrote: post #109
arbuge wrote: post #50

I have a hard time understanding why the IRS doesn't at least have a basic web portal for individuals and businesses to do simple things like update addresses, send secure correspondence, check on the status of correspondence, file forms electronically, etc. A lot of paper forms and letters, human resources and time could be saved with such a system, even if it doesn't actually provide for any tax computations itself…

As someone from Mexico, it's honestly insane that our system works as good as it does compared to the US. 1. All my incomes are automatically filed. 2. Each month I say "yes this is correct" on the website, and pay immediately via any bank. 3. At the end of the tax year, the system calculates if they own me money automatically, I give it my bank account and in some days I have my return. It even handles tax deductibl…

Mexico system is crazy complex and confusing.

An archaic, windows-only Java app to generate pairs of password-protected keys, which then have to be fed back into the system to declare your tax status. And they expire every so often, so you have to track down your old keys from years ago and remember the password. Confused? Just set up a SAT appointment, they'll be with you in... weeks.

Having to declare your tax categorization multiple times per year.

Facturas that companies will only generate for you for a limited amount of time, and complicated questionnaires to fill out if you DO want one so you get the right type. Assuming they'll even give you a factura at all.

I fully admit that I have an incomplete understanding of the system, this is just what I've seen my wife try to deal with. And she's the equivalent of a 1099 so her situation may be more complicated.

Re: IRS to begin trial of its own free tax-filing system

#125

Post by gaganyaan »

yokem55 wrote: post #85
hackernewds wrote: post #70

Earlier quoted context omitted.

[flagged]

The agents being hired are mostly just support agents answering the phone. And on net the investment in improving the IRS is a net positive on revenue because they can more effectively go after folk who are cheating. It's amazing how some folks will be ardently opposed to "defunding the police" ... except for the tax police.

You do realize why the IRS and cops are different, yes?

Re: IRS to begin trial of its own free tax-filing system

#126

Post by LamaOfRuin »

practicemaths wrote: post #96
fsmv wrote: post #78

Earlier quoted context omitted.

I heard that this sometimes takes them much longer to process the returns that way. Has that been your experience? One time I reproduced the forms in a spreadsheet following the instructions and it wasn't much different from doing the online wizards. I would have liked to mail it in but I just paid to e-file anyway.

My experience has been that it can be relatively faster. That is, the last time I filed online it took I think practically a year before they got to it (I think the year of the pandemic) I figure there's so few people filing by mail these days that they're able to process them faster than the huge amount of online filing. I'm guessing they're separate teams (online vs mail). However I have no idea. Regardless mailing…

My understanding is that it is generally under control now, but a couple years ago their processing of paper forms was in fact so backed up that the physical space was over capacity. There was a fair amount of news coverage of this, including photos of the cafeteria in one of their processing centers being packed with paper awaiting processing because there was nowhere else to put it. At one point they also basically declared paper processing bankruptcy and just told people if they had mailed something and were still waiting for a response to just send it again because the first one was probably a lost cause.

Re: IRS to begin trial of its own free tax-filing system

#127

Post by ghaff »

hackernewds wrote: post #68
freedomben wrote: post #63

Earlier quoted context omitted.

For those who don't know, of those 12 states, only 4 actually have income taxes. The other 8 do not. This whole system stinks. The overly complicated tax code, the sleazy corporations making tons of money on it, the entrenched politicians and bureacrats who make a living on it, etc.

We can still appreciate progress. And this is progress. Although if the IRS is gonna audit when I under pay, they technically already know how much I owe. Why not just tell me? Reckon it's since people also over pay, and there's no refunds for doing that.

Not at all clear the IRS won’t refund overpayments. I’ve gotten a check in the distant past when I double-paid something.

Re: IRS to begin trial of its own free tax-filing system

#128

Post by ghaff »

proc0 wrote: post #113

They should also work with companies and have an opt-in for automatic filing since a lot of people just have one job. Not only do you have pay them a chunk of your salary but you have to also do the work to report it accurately according to a complicated system.

If all you have is a modest W-2 and are taking standard deduction (most people in the US) it would be nice if the IRS pre-filled out a form. It’s also pretty simple to just fill out a 1040 in those circumstances.

Re: IRS to begin trial of its own free tax-filing system

#129

Post by ghaff »

no_wizard wrote: post #47
GreedClarifies wrote: post #16

Earlier quoted context omitted.

So in its initial form it is indeed a complete waste of tax payers money. Shocking.

Why is it that when private institutions make software they’re suppose to “iterate fast” and quickly get an MVP out But when a government agency is working in software, suddenly all the best practices are a “waste of tax payer money” Seems silly

Who says iterate fast is always a best practice for private companies?

Re: IRS to begin trial of its own free tax-filing system

#130

Post by ethbr1 »

akira2501 wrote: post #84
ethbr1 wrote: post #10

Earlier quoted context omitted.

Turns out, the easiest way to get rid of taxes is to not pay anyone to run the tax system. Bonus: being able to claim you're being fiscally responsible. (Despite taxes being a revenue generator and salary to administer them being revenue-positive)

Turns out, that's not even what's happening. In the 1950s, the citizens paid 50% of the treasury revenues. Business paid 25% and excise taxes covered the other 25%. Today, the citizens pay 85% of the treasury revenues. Business pays 7% and excise taxes cover the other 7%. They're not trying to "get rid of taxes" they're "massively shifting the burden onto the individual." This, by the way, isn't a republican vs. demo…

That's also an international issue, driven by a race to the bottom (cough Ireland et al).

Thankfully, some progress was made on internationally agreeing to 15% as a floor, coming into effect this year.

https://www.forbes.com/sites/katharinabuchholz/2024/01/05/wh...

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