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Would You Let the I.R.S. Prepare Your Taxes? (2015)

nytimes.com

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Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#21

Post by VikingCoder »

chatmasta wrote: post #6

“Your taxes” is such an overloaded term that it’s almost comical to refer to it as if it means the same thing for everyone. There is basically one straight-forward case where the IRS preparing taxes makes sense: that of full time employees whose only income is from their job which issues W2s. For everyone else — which includes: - People working multiple part time jobs - People with non-standard investment portfolios…

What makes it so hard for "People working multiple part time jobs"?

"And that’s not even considering the moral hazard of misaligned incentives, i.e. the IRS has no incentive to make sure you deduct as much as legally possible from your return."

This article isn't advocating that your taxes would be submitted without your review. It's advocating that they be PREPARED. As in prepared for further editing or review.

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#23

Post by wyldfire »

forgotmypw wrote: post #10

I stopped filing my taxes starting in 2011 for 2010. I had always hated the process, but in 2010 I had switched jobs several times, and had misplaced one of the stubs mailed by an employer. I have almost always worked as an employee, not a contractor or business, so I did not owe money--they probably owed me. I decided that rather than get the couple hundred bucks I would receive as my return, I will forgo the stupid…

> I gave up income altogether

What does this mean?

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#24

Post by ebiester »

chatmasta wrote: post #6

“Your taxes” is such an overloaded term that it’s almost comical to refer to it as if it means the same thing for everyone. There is basically one straight-forward case where the IRS preparing taxes makes sense: that of full time employees whose only income is from their job which issues W2s. For everyone else — which includes: - People working multiple part time jobs - People with non-standard investment portfolios…

Think of it more as "The IRS has prepared this return for you. Look at it. If it's what you expect, you have nothing else to do other than send a check if you owe or a bank account for your refund. If you have extra information (more income, deductions, etc) - then you are free to fill out your own forms.

As such, 60-70% of the population would have nothing to do. People with multiple part time jobs would be fine. The rest would still have more to do. So, at worse, it hasn't become worse, and it is better for the majority of people.

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#25

Post by canadaj »

zacharycohn wrote: post #17
forgotmypw wrote: post #10

I stopped filing my taxes starting in 2011 for 2010. I had always hated the process, but in 2010 I had switched jobs several times, and had misplaced one of the stubs mailed by an employer. I have almost always worked as an employee, not a contractor or business, so I did not owe money--they probably owed me. I decided that rather than get the couple hundred bucks I would receive as my return, I will forgo the stupid…

You may want to consult a tax attorney, if you haven't already...

I second this. Uncle Sam isn't going to just overlook 4+ years of un-filed tax returns.

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#26

Post by scott_s »

chatmasta wrote: post #6

“Your taxes” is such an overloaded term that it’s almost comical to refer to it as if it means the same thing for everyone. There is basically one straight-forward case where the IRS preparing taxes makes sense: that of full time employees whose only income is from their job which issues W2s. For everyone else — which includes: - People working multiple part time jobs - People with non-standard investment portfolios…

Most people have boring taxes. For those people with interesting taxes, they can do them themselves or pay someone else to do them. For the exceptional cases, this is what they already do. Arguing against something that simplifies an act for most people by pointing out that it doesn't apply to everyone does not make sense to me.

I think it's almost important to keep in mind that the IRS already does your taxes. If what they do significantly disagrees with what you do, you have problems. I would much prefer the IRS just sends me their work rather than me having to do it, then send it to them for checking.

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#27

Post by jonnycomputer »

mox1 wrote: post #11
pnathan wrote: post #7

I would absolutely let the IRS prepare my taxes... if this workflow or one like it is followed: Jan, I get a 1040 form, prefilled out. If I don't agree that it states my financial position correctly, I can correct it & send it back by Mar 1st. If I do agree, I place it in my file cabinet. But as patio11 noted, at least once, the IRS enforces taxes to the amount Americans will tolerate. What he did not say, but I have…

This is the irony, that in your scenario (which I agree with), My "check" would be to purchase Turbotax or similar and run the numbers. So whether the IRS pre-fills the 1040 or I do it myself, I'm going to use tax prep software. I guess they loose the e-filing fees, but most version of the software come with 1 free federal and 1 free state..

Free, unless you earn too much, or if you have any any business income.

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#28

Post by JumpCrisscross »

forgotmypw wrote: post #10

I stopped filing my taxes starting in 2011 for 2010. I had always hated the process, but in 2010 I had switched jobs several times, and had misplaced one of the stubs mailed by an employer. I have almost always worked as an employee, not a contractor or business, so I did not owe money--they probably owed me. I decided that rather than get the couple hundred bucks I would receive as my return, I will forgo the stupid…

> I guess you could call it civil disobedience

Willful failure to file is a felony [1].

[1] https://www.irs.gov/irm/part25/irm_25-001-007

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#29

Post by chatmasta »

ebiester wrote: post #24
chatmasta wrote: post #6

“Your taxes” is such an overloaded term that it’s almost comical to refer to it as if it means the same thing for everyone. There is basically one straight-forward case where the IRS preparing taxes makes sense: that of full time employees whose only income is from their job which issues W2s. For everyone else — which includes: - People working multiple part time jobs - People with non-standard investment portfolios…

Think of it more as "The IRS has prepared this return for you. Look at it. If it's what you expect, you have nothing else to do other than send a check if you owe or a bank account for your refund. If you have extra information (more income, deductions, etc) - then you are free to fill out your own forms. As such, 60-70% of the population would have nothing to do. People with multiple part time jobs would be fine. Th…

What happens when the IRS gets it wrong and the impoverished recipient has nobody to review it for them?

(Still I suppose that may be an improvement over the status quo)

Re: Would You Let the I.R.S. Prepare Your Taxes? (2015)

#30

Post by ghaff »

clarkevans wrote: post #12
chatmasta wrote: post #6

“Your taxes” is such an overloaded term that it’s almost comical to refer to it as if it means the same thing for everyone. There is basically one straight-forward case where the IRS preparing taxes makes sense: that of full time employees whose only income is from their job which issues W2s. For everyone else — which includes: - People working multiple part time jobs - People with non-standard investment portfolios…

Everyone else is, what 10% of filers? If you're in the 10% you'll know it and you'll do private preparation.

About 2/3rds of people do file a 1040 rather than a 1040A or 1040-EZ which at least suggests that most people do have taxes that are more complex than just just a W2 and a standard deduction.
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