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by NovemberWhiskey 1738 days ago
>Filing taxes in the rest of the developed world is essentially a one-click process

I'm a little fed up of this canard. No. This is not the case. I've lived in the UK and had to do self assessment filing. It was not "essentially a one-click process". I have lived in Japan and filed taxes there. It was also not "essentially a one-click process".

>have all the information necessary to create such software (and so does the IRS)

No, it does not. A significant chunk of social programs are run in the US via the tax system (primarily through the forms of various credits) and are dependent on facts that the IRS does not know.

3 comments

The proposals aren't that you have to use a 1 click process, just that it's the default starting point. People will of course need the ability to add deductions and other information if they so choose. But for someone who just needs to fill out a normal return with information that the IRS already has, and is already using to verify that return, why on earth shouldn't we just make that automatic?

It's a massive waste of time to require millions of people needlessly fill out forms that the IRS already fills out on their end! It's a manufactured problem to benefit a scummy company.

>I'm a little fed up of this canard. No. This is not the case. I've lived in the UK and had to do self assessment filing. It was not "essentially a one-click process". I have lived in Japan and filed taxes there. It was also not "essentially a one-click process".

On the other hand, where I live in Sweden the process is essentially one-click, and there are several other countries in Europe where the same is true. No idea why U.K would still be bad, but I can see Japan being bad given their stamps on paper-culture. Pity.

>No, it does not. A significant chunk of social programs are run in the US via the tax system (primarily through the forms of various credits) and are dependent on facts that the IRS does not know.

Is information from these social programs a necessity for filing taxes? If so, the fix is simple: have them report these numbers into the IRS. Otherwise, have a base case of 0 and allow this information to be added as needed.

>Is information from these social programs a necessity for filing taxes? If so, the fix is simple: have them report these numbers into the IRS.

You misunderstand. The IRS implements the social program via the tax system.

For example, most European countries operate some kind of universal child benefit for parents. So maybe parents can receive a weekly payment of some kind.

In the U.S. this program does not exist. Instead, there is a refundable tax credit (the Child Tax Credit). When you file your taxes, you tell the IRS how many children you have, how old they are and so on and if your taxes are low enough that the credit offsets your taxes, the IRS sends you a check for the difference.

Similarly, many European countries have some form of government income support for low earners; again typically paid by some social security agency.

Although there is a program called TANF that does this for the most needy, the majority of benefits are delivered through another refundable tax credit (the Earned Income Tax Credit). Again you end up sending the IRS all the data necessary about why you qualify for this social program and maybe you get a check back at the end.

Basically, a significant amount of the transfer payments for social programs in the U.S. are implemented directly in the tax code, so the "tax filings" that people have to make combine both income information as well as qualifications for social benefits.

Those kids have social security numbers that the IRS definitely has, and social programs are based on income, which is reported to the IRS.

If it wasn't possible, Intuit wouldn't bother lobbying.

Probably depends on the filer's situation.