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Would You Let the I.R.S. Prepare Your Taxes?

nytimes.com

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Re: Would You Let the I.R.S. Prepare Your Taxes?

#21

Post by astraelraen »

I am a CPA and unless you have dealt with the IRS over the long-term, I think most of America has no idea how incompetent the IRS is.

You would be frightened if they prepared your taxes for any more than the simple return, ie some W2s. I would not even want the IRS to automatically prepare taxes for "simple" forms such as 1099-Int/1099-Div or 1099-B for stock sales.

And I do not say that from a "job security" perspective for the tax work we do.

The solution isn't government prepared taxes, it is less taxes.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#22

Post by desas »

higherpurpose wrote: post #7

In other countries it's the employers that pay pretty much all of your taxes. They just keep the taxes from your salary and then when they pay their own taxes they also pay yours. I do think there's a slight disadvantage in having the taxes essentially "hidden away from you". This could be somewhat alleviated if instead of 10 different taxes there are just 2 or 3 at most, to make the whole thing more understandable.…

In the UK employers usually sort out taxes for you via the Pay As You Earn system. Everytime you get paid you will be issues with a payslip which shows how much you were paid before deductions (tax, student loans), a break down of the deductions and how much you earned after tax.

The only tax you don't see is Employers National Insurance - this is a tax on employing someone that is around 12% of their wage.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#23

Post by _asummers »

1971genocide wrote: post #6

As an non-american this baffles me. Why is there so much distrust towards the government, police, and military in US ? Isn't the US the oldest democracy ? Society is built on trust - once that doesn't exist then nothing gets done.

America was built because we rebelled from our government via violent revolution. The Constitution was clearly written by people fearing a new tyrannical government (see 2nd amendment). Whether this attitude should be so pervasive is another discussion, but that's where the seed is from.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#24

Post by masklinn »

fnordfnordfnord wrote: post #9

If it came with some sort of indemnity from audit penalties, and as long as I could amend or re-file with my own calculated return, yes.

> If it came with some sort of indemnity from audit penalties

Not really possible, after all you may have income streams you must declare which the IRS is not immediately aware of, and failure to declare those would be an audit failure.

> and as long as I could amend or re-file with my own calculated return, yes.

If it's anything like most of the developed world (which I'd expect), the tax authority's automated systems simply pre-fill the declaration with what they know, it's expected that the taxpayer will check and amend it, or ignore it entirely if you want to file "from scratch".

Re: Would You Let the I.R.S. Prepare Your Taxes?

#25

Post by jeletonskelly »

onion2k wrote: post #17
1971genocide wrote: post #6

As an non-american this baffles me. Why is there so much distrust towards the government, police, and military in US ? Isn't the US the oldest democracy ? Society is built on trust - once that doesn't exist then nothing gets done.

Isn't the US the oldest democracy? No. Not by about 2500 years in ancient Greece.

Oldest, continuously and currently running, democracy.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#26

Post by jeffasinger »

astraelraen wrote: post #21

I am a CPA and unless you have dealt with the IRS over the long-term, I think most of America has no idea how incompetent the IRS is. You would be frightened if they prepared your taxes for any more than the simple return, ie some W2s. I would not even want the IRS to automatically prepare taxes for "simple" forms such as 1099-Int/1099-Div or 1099-B for stock sales. And I do not say that from a "job security" perspec…

I agree, and I stand no benefit in job security from not having the IRS do it.

The IRS will assume that the entire 1099-B is income, even though your cost basis (and therefore actual income) is right on the form.

That said, I'd love to see Intuit go away.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#27

Post by mooreds »

1971genocide wrote: post #6

As an non-american this baffles me. Why is there so much distrust towards the government, police, and military in US ? Isn't the US the oldest democracy ? Society is built on trust - once that doesn't exist then nothing gets done.

Yes, it's worrisome. Don't forget that we've had 45 years of one of the major parties telling us 'government is the problem'. So, a whole generation has been brought up hearing this as a valid view.

And, there's a deep distrust of centralized authority in American history. Up until the closing I'd the western frontier (1890s), that distrust could be mollified by moving to 'unsettled' land. Then the USA had a almost a century of increasing government size and action, and then the Reagan reaction I mention above.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#28

Post by acheron »

onion2k wrote: post #17
1971genocide wrote: post #6

As an non-american this baffles me. Why is there so much distrust towards the government, police, and military in US ? Isn't the US the oldest democracy ? Society is built on trust - once that doesn't exist then nothing gets done.

Isn't the US the oldest democracy? No. Not by about 2500 years in ancient Greece.

Presumably the OP means "continually existing", though San Marino would dispute that claim too.

Re: Would You Let the I.R.S. Prepare Your Taxes?

#29

Post by lostcolony »

Demiurge wrote: post #15

I have done taxes using the free way historically, on TurboTax. This year, I again opted for 'no charge' option, went though, and at the very end had to pay $104.00 without any explanation. I tried going back but I couldn't find if I had mistakingly selected something because they throw in payed options as you go. But I couldn't find or change anything, so decided to file instead of doing taxes the old fashioned pape…

Time to switch to TaxAct?

Re: Would You Let the I.R.S. Prepare Your Taxes?

#30

Post by maxerickson »

onion2k wrote: post #17
1971genocide wrote: post #6

As an non-american this baffles me. Why is there so much distrust towards the government, police, and military in US ? Isn't the US the oldest democracy ? Society is built on trust - once that doesn't exist then nothing gets done.

Isn't the US the oldest democracy? No. Not by about 2500 years in ancient Greece.

I think for the connotation in the parent comment you might say that the US became a democracy in 1920 or 1965 (but we still deny, for instance, children, the right to vote).

(at least, I tend to think that the modern concept of democracy is bound up with self determination, something that ancient Greece sort of did not have, nor did the US when it was founded)

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