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IRS Direct File to open to all 50 states and D.C. for 2025 tax season

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Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#21

Post by kbolino »

bombcar wrote: post #13
jawns wrote: post #12

The Taxpayers Protection Alliance spokesperson quoted at the bottom says: > Private tax services "have every incentive to find the deductions that will yield them the best return," Zupkus said, adding that the IRS wants "to extract as much as possible from the taxpayer." I think it's worthwhile to acknowledge that there are indeed slightly different incentives involved when it comes to the private sector handling tax…

It's not even correct - the IRS wants to follow their rules as closely as they can. I have had the IRS unprompted send me an additional refund because of a mistake I made on my forms, and they caught. (They also included a letter saying that if I thought my mistake was right, I could fight the refund, or file a new amended form and go for a bigger one.)

I have had the IRS charge me tax and accuse me of lying to them over a UTMA withdrawal used to pay for tuition even though the fund running the account refused to send me the paperwork because the account is in my parent's name first instead of mine.

It is a massive organization filled with uncoordinated people doing their level best to produce Brownian motion.

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#22

Post by lcnPylGDnU4H9OF »

bombcar wrote: post #13
jawns wrote: post #12

The Taxpayers Protection Alliance spokesperson quoted at the bottom says: > Private tax services "have every incentive to find the deductions that will yield them the best return," Zupkus said, adding that the IRS wants "to extract as much as possible from the taxpayer." I think it's worthwhile to acknowledge that there are indeed slightly different incentives involved when it comes to the private sector handling tax…

It's not even correct - the IRS wants to follow their rules as closely as they can. I have had the IRS unprompted send me an additional refund because of a mistake I made on my forms, and they caught. (They also included a letter saying that if I thought my mistake was right, I could fight the refund, or file a new amended form and go for a bigger one.)

To be fair, that's also the kind of thing Intuit would love to catch since it will make them look good (as they bill people for the privilege of filing taxes, of course).

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#23

Post by Laaas »

CharlieDigital wrote: post #2

> Rep. Brad Sherman (D-Calif.), an accountant and senior member of the House Financial Services Committee, told Axios in April that he wants to go "way beyond Direct File," calling for a "self-populating form." > > "Why in the heck should you have to fill out your return when the government has all the information. They know what's on your W-2 form before you do. They know what's on your 1099 … Do you know how many m…

I’d rather have them not know than automatic taxes.

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#24

Post by danans »

jawns wrote: post #12

The Taxpayers Protection Alliance spokesperson quoted at the bottom says: > Private tax services "have every incentive to find the deductions that will yield them the best return," Zupkus said, adding that the IRS wants "to extract as much as possible from the taxpayer." I think it's worthwhile to acknowledge that there are indeed slightly different incentives involved when it comes to the private sector handling tax…

> Zupkus said, adding that the IRS wants "to extract as much as possible from the taxpayer."

The IRS doesn't want your tax dollars, they are just the mechanism by which the federal government enforces tax collection according to the law.

I've gotten refunded by the IRS for taxes they found that I overpaid years ago. Neither I nor my accountant did anything to initiate that. I'm not alone in getting an unprompted refund.

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#25

Post by larkost »

kbolino wrote: post #21
bombcar wrote: post #13

Earlier quoted context omitted.

It's not even correct - the IRS wants to follow their rules as closely as they can. I have had the IRS unprompted send me an additional refund because of a mistake I made on my forms, and they caught. (They also included a letter saying that if I thought my mistake was right, I could fight the refund, or file a new amended form and go for a bigger one.)

I have had the IRS charge me tax and accuse me of lying to them over a UTMA withdrawal used to pay for tuition even though the fund running the account refused to send me the paperwork because the account is in my parent's name first instead of mine. It is a massive organization filled with uncoordinated people doing their level best to produce Brownian motion.

That sounds like you are agreeing with the post you are replying to: the IRS is trying very hard to stick to their rules. You have a deduction that neither you nor the IRS have paperwork for (since the fund is not acknowledging it as a covered expense), so they are following the rules.

I can understand how you are frustrated about the situation, but this does not seem to me to be random behavior, but rather straightforward rule following.

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#26

Post by vundercind »

bombcar wrote: post #18
spiderice wrote: post #6

Earlier quoted context omitted.

This works against the governments interest, as they'll lose revenue from all the fines they give to people who accidentally fuck up their tax return.

It does work against the government's stated interest, but not in the way you think. Tax policy is the government's strongest tool to change personal behavior, and if the system is simple and automated it doesn't do that at all.

Why… not?

If anything it’s a great opportunity to put personalized suggestions for how to reduce one’s taxes (=change behavior) directly in front of the eyeballs you want to see it. Put it directly on the page where you click “looks good to me” on the automatically-filled-in tax form.

“Looks like you’ve never used your one-off solar panel federal tax credit. Click here for information on how to save up to $xx,xxx on next year’s taxes, while also reducing your energy bill!”

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#27

Post by mrangle »

mrangle wrote: post #10
CharlieDigital wrote: post #7

Earlier quoted context omitted.

The point of the government isn't to make a profit; it's to serve the people.

[flagged]

The people who are downvoting my "disagree" are likely assuming that I am speaking philosophically. I'm not. Philosophically, sure: the purpose of the government is to serve the people. A philosophy written specifically for the consumption of people. But now I'm speaking about its practical purpose. What a system produces is always its purpose.

Re: IRS Direct File to open to all 50 states and D.C. for 2025 tax season

#30

Post by tills13 »

Laaas wrote: post #23
CharlieDigital wrote: post #2

> Rep. Brad Sherman (D-Calif.), an accountant and senior member of the House Financial Services Committee, told Axios in April that he wants to go "way beyond Direct File," calling for a "self-populating form." > > "Why in the heck should you have to fill out your return when the government has all the information. They know what's on your W-2 form before you do. They know what's on your 1099 … Do you know how many m…

I’d rather have them not know than automatic taxes.

Why
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