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Direct File won't happen in 2026, IRS tells states

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Re: Direct File won't happen in 2026, IRS tells states

#161
post #37

Earlier quoted context omitted.

If they do, I'm filing paper. Clowns.

You know, the IRS is basically defunded, even not counting the whole shutdown thing. I wonder how many people need to file handwritten by mail before it becomes a significant problem

Gut feel is if 10% of taxpayers did it the system would be pretty well DOS'd.

Re: Direct File won't happen in 2026, IRS tells states

#162
post #155

Earlier quoted context omitted.

You don't have to pay. https://www.irs.gov/e-file-providers/free-file-fillable-form... As for "having most of your tax information", they don't. They know your reported income. You see that on your W2s/1099s/etc. What they don't know is whether or not you had a kid this year, or whether you lost a kid this year, whether you got married or divorced, if your spouse is claiming the kids this year or not, the number or a…

This argument could be put in a museum as a perfect illustration of the "Perfect is the enemy of good" maxim. Would just relying on the information from your employers cover all possible edge-cases? No. Would it dramatically simplify the process for (tens?) millions of people? Absolutely.

The number and type of people living in your household is not an edge case. It applies to almost everyone, has huge tax impacts, and the IRS doesn’t know.

Re: Direct File won't happen in 2026, IRS tells states

#163
post #47
post #33

Earlier quoted context omitted.

> Politicians should ask for way more money so lobbying is not that incredibly profitable. Except those corrupt politicians want lobbying to be profitable, so they can profit from it too. And if they ask for too much, they’ll just bribe the next guy or may even try to put their own in office. Can’t have that!

Healthy competition, the free market has resolved the issues of overpriced bribes. /s

I'm surprised that politicians haven't established burdensome and expensive professional compliance and licensure requirements for their own trade to restrict upstart competition. Every other trade pays them to implement the same so it's not like they're not familiar with how to do it.

Re: Direct File won't happen in 2026, IRS tells states

#164

Earlier quoted context omitted.

Doesn't America have uniquely complicated tax that requires you to keep all your receipts to claim all sorts of confusing deductions? How can the IRS know what you spent your income on if you don't tell them? I've had the misfortune of having to fill in a W8-BEN-E form [1] and the first time, I just gave up and refused to work with the client because it was too complicated. The 2nd time, I got an LLM to tell me how t…

I highly doubt that it's more complicated than the French or German tax system.

They make even the simple case more complicated than it needs to be. In these other countries, most people don't need to file anything, it just works with what the state already knows. You don't have to provide a load of supplementary info to get the correct outcome. I can only guess you think this way because you've not done taxes in another country.

Re: Direct File won't happen in 2026, IRS tells states

#165
post #155

Earlier quoted context omitted.

You don't have to pay. https://www.irs.gov/e-file-providers/free-file-fillable-form... As for "having most of your tax information", they don't. They know your reported income. You see that on your W2s/1099s/etc. What they don't know is whether or not you had a kid this year, or whether you lost a kid this year, whether you got married or divorced, if your spouse is claiming the kids this year or not, the number or a…

This argument could be put in a museum as a perfect illustration of the "Perfect is the enemy of good" maxim. Would just relying on the information from your employers cover all possible edge-cases? No. Would it dramatically simplify the process for (tens?) millions of people? Absolutely.

The info that the IRS has from your employer is maybe 5 boxes on your return. Literally takes a few minutes to take the info from your w-2 and put it on a 1040.

Re: Direct File won't happen in 2026, IRS tells states

#166
post #76

Earlier quoted context omitted.

Which is basically how it works here too. If you just have W-2 income from an employer it takes less than 10 minutes to fill out the form. Sure, the system you mention is more convenient, but the difference is minimal.

The system he mentioned is usually equally simple for self-employed.

When I have had 1099s from consulting work it has also been very easy to file. Not quite as easy as Direct File could make it, but pretty damn easy.

Re: Direct File won't happen in 2026, IRS tells states

#167
post #67

Earlier quoted context omitted.

You know, the IRS is basically defunded, even not counting the whole shutdown thing. I wonder how many people need to file handwritten by mail before it becomes a significant problem

IRS will absolutely go after regular people who just have a W-2 and maybe a couple of 1040 forms. It's easy to verify automatically. But if you're a rich person with dozens of companies and complicated trusts? Yep, nobody is going to be looking.

This is incorrect - the higher your income the higher percent chance you have of being audited. (Also higher for very low income https://www.congress.gov/crs-product/IF12521#:~:text=The%20I...

Re: Direct File won't happen in 2026, IRS tells states

#168

Earlier quoted context omitted.

Which is basically how it works here too. If you just have W-2 income from an employer it takes less than 10 minutes to fill out the form. Sure, the system you mention is more convenient, but the difference is minimal.

The IRS already has most of my tax information and knows the tax code. Why must I deal with a third party (and potentially have to pay them) to electronically file my own taxes?

You don't have to do that. There is no such requirement. You can fill out the forms for free.

Re: Direct File won't happen in 2026, IRS tells states

#169
post #49

Earlier quoted context omitted.

Maybe lobbyists should be punished by having their skin fully tattooed blue like smurfs. This way, you’d have to really be into lobbying to suffer the tattoo pain and permanent branding.

Lobbyists aren't the problem. They are doing what they are paid to do. If you donate to a large charity, there is a good chance some of that $ goes to lobbying, as it should. (Presumably you want the issues goy care about to be fixed!) If you work at a large company, 100% chance it lobbies, for good reason. Large employers lobby for better mass transit (because parking garages are expensive), more housing (because it…

This would all be fine if the lobbying $ was only being paid to the lobbyists. The moment the $ flows to the politicians, it is what other countries would call a bribe.
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