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In response to
"Time to overhaul the system. My layman's understanding is the IRS knows all the info we're sending them and the vast majority of us "
by
Krusty
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Yes and no.
Posted by
spamlet
Jul 19 '21, 06:22
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There are problems with this approach to.
Some are operational. The IRS' core competency is not software design. With all of the really late changes that Congress likes to make to rules, the tax season might not start until July if they have to design and test and implement the changes made in February.
Also, if there are errors they are extremely difficult to get fixed. Especially if they are made on the IRS side. Hours and hours and hours trying to contact the IRS and convince them they made a mistake multiplied by 200m filers relying on the IRS is a nightmare waiting to happen.
If you have a side hustle, you'd literally never report it. The IRS sends you your return based on the information they have, you say "sounds good" and make no adjustments to it. Compliance would definitely go down.
I couldn't care less about keeping accountants fully employed (my ideal tax system would destroy thousands of accountant jobs) but I deal with the IRS enough to know that flipping the script given the current situation would lead to more pain for people.
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