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Free IRS-run tax filing pilot to be available in 13 states

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Re: Free IRS-run tax filing pilot to be available in 13 states

#271
post #75

Earlier quoted context omitted.

Can you elaborate on that, perhaps with some substantive example? I believe that these companies lobby to keep IRS from providing free tax prep, but I do not think that they lobby to make the tax code more complicated. It’s my understanding that the tax code is complicated as a result of disparate efforts to increase support among voting blocks, to encourage/discourage behaviors, and to reward supporters/backers.

https://billmoyers.com/story/how-lobbying-by-tax-preparer-he...

None of that examples support the thesis that tax preparation companies are responsible for making the tax code more complicated.

Re: Free IRS-run tax filing pilot to be available in 13 states

#272
post #252

Earlier quoted context omitted.

A tangential comment given your mention of whatever 99 B form: Every time HN discussion about US taxes comes, I imagine a sizeable group of users from developed country watch in amusement the craziness that the IRS makes its taxpayers go through to charge them money. I know in Mexico and Chile everything is highly automated. In Mexico 50%+ of working class dont have to do ANYTHING, as whatever tax stuff needed is sub…

1099-anything, by definition, doesn't come from an employer. They're for other sources of income (brokerage sales, interest, etc.). The US would need to vastly simply the tax code - remove all the various tax breaks for dependents/spouses, remove the progressive taxation scale, etc. - before it could be successfully automated.

I've got REITs. I've got pension investment. I've got a house I'm getting interest off of, I've got stock, both Mexican and US (TQQQ and chill!), and I work at a company earning enough to HAVE to go into the Mexican IRS portal do do my taxes "manually" (I.e. my employer cannot do it for me).

With all of that, I just get into SAT page, ask it to fill up everything with the data they already collected, review it, and agree on the $$$ they will give me back (yay mortage!).

It CAN be that simple. that's what systems are for: to automate complex processes. Computers excellent at it.

All

Re: Free IRS-run tax filing pilot to be available in 13 states

#273

Earlier quoted context omitted.

Is a CSV not a good API? Most systems will allow you to export data in a columnar CSV format. Being able to then import these would solve the problem. "Swivel chair handoff"

In that case I'll have to log in to each account, find the right place to download data, download them, and import them to my tax system. I'd rather have a turn-key solution. And I definitely have no interest of writing a program to automate such task.

[deleted]

Re: Free IRS-run tax filing pilot to be available in 13 states

#276
post #258

There are lots of comments along the lines of "xxx is cheap" Why on earth do you need a third party for your tax calc and resolution? It is surely the antithesis of the "land of the free" and all that stuff. In the boring old UK I login to a govt. run website to do my annual tax self assessment. My P60 is already filled in (that's my PAYE - pay as you earn, my normal salary) I'm a company director too so I have divid…

You're expecting coherency in the American libertarian mindset. There is none. "why should the government control the means of tax filing! I need to be free to pay a private company to do it!"

Libertarians who want to pay taxes.. Now there's a powerful lobby. Have you considered starting a think tank with your political acumen lol

Re: Free IRS-run tax filing pilot to be available in 13 states

#277
post #57

Declaring taxes in Brazil is free, but it's hard work (if you dabble with stocks, for instance). For 1/5 of the value of the minimum wage you can hire a accountant that does it for you. I think the service is worth it's price. All i have to do is send them a bunch of documents and they make sense out of it.

This is the way it should be here in the US, and this is the way it works in a lot of countries. The tragedy is, we all know it, and we all want it to change, but there are a few people who don't want it to change, and they're empowered to make it that way. I hope this IRS effort works out.

If I read the parent correctly it is already how it is in the US. If you do it yourself it is free, and for most people it wouldn't even be that complicated.

Re: Free IRS-run tax filing pilot to be available in 13 states

#278
post #258

There are lots of comments along the lines of "xxx is cheap" Why on earth do you need a third party for your tax calc and resolution? It is surely the antithesis of the "land of the free" and all that stuff. In the boring old UK I login to a govt. run website to do my annual tax self assessment. My P60 is already filled in (that's my PAYE - pay as you earn, my normal salary) I'm a company director too so I have divid…

You're expecting coherency in the American libertarian mindset. There is none. "why should the government control the means of tax filing! I need to be free to pay a private company to do it!"

It’s not just that. Remember this is normal in the US.

Paper sucks. Tax filing helpers (people/software) have always cost money. “The government sucks” and won’t try to help you.

And, oh yeah, ads and tax prep stores everywhere.

No one questions it. They don’t like it, but they accept it. Just like so many other things in the US because we’ve never seen anything else.

Re: Free IRS-run tax filing pilot to be available in 13 states

#279
post #243
post #234

Earlier quoted context omitted.

That's for failure to file or pay on time. The bar for a mistake (assuming you filed and paid on time) is much lower, see the next section, "Accuracy-Related Penalties," on the first link you posted: https://www.irs.gov/payments/penalty-relief-for-reasonable-c...

At the very least, I'm going to contend that it's not a DIY thing. It's something that you should hire a tax pro for, so they can properly assess your situation and present your case. > In a number of recent Tax Court cases, taxpayers have raised the argument that they relied on Turbo Tax software as a defense to the imposition of the accuracy-related penalty. With one notable exception, the so-called “Turbo Tax defe…

It depends.

For me so far the problems have been easily sorted out except once. The once was a lot of extra and unnecessary calculations but essentially no penalty. Just the cost of my time, which is bad enough.

My main complaint (which is still fairly minor) is that they still too often presume that "it" (the reason why they want more money) is the fault of the individual taxpayer. No need for them to consider other possibilities. Once, a client provided poor numbers on their 1099 and I used my version. Both versions based on my invoices. IRS doesn't bother to ask for a clarification. Just sent me a bill and fine. And I suspect in the end after my response letter, they audited the client. Not the best result but only a little stressful on my side.

Re: Free IRS-run tax filing pilot to be available in 13 states

#280

Earlier quoted context omitted.

Is a CSV not a good API? Most systems will allow you to export data in a columnar CSV format. Being able to then import these would solve the problem. "Swivel chair handoff"

In that case I'll have to log in to each account, find the right place to download data, download them, and import them to my tax system. I'd rather have a turn-key solution. And I definitely have no interest of writing a program to automate such task.

to connect your banks to you will also need to login to each account.

how many accounts do you possess? seems like a non issue.

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