Actually it’s not a bad idea. The IRS already gets automated feeds for income, investments, intestests, w2’s, 1099s.
The IRS could send out a precalculated return that says
“This is what we calculated for you.
If you don’t have any other income to report such as items in this list and you don’t have any other items to deduct such as items in this list, then sign the slip at the bottom and return in the postage paid envelope.
It’s ridiculous and obscene. The states should each set their own tax policy and then let the states pay the FedGov based on services used and representation.
Actually it’s not a bad idea. The IRS already gets automated feeds for income, investments, intestests, w2’s, 1099s.
The IRS could send out a precalculated return that says
“This is what we calculated for you.
If you don’t have any other income to report such as items in this list and you don’t have any other items to deduct such as items in this list, then sign the slip at the bottom and return in the postage paid envelope.
********
If the taxpayer is going to wait to hear from IRS, it will mean you are completing your return later.
Right now, you wait for your info reports (W-2, 1099, 1098, the ACA 1095-A, etc.) and usually get them around the end of January or mid-February deadline for them to be issued to you. Then you can use them and the your other information to file your own return.
After you file, IRS reviews what you reported to see if it jives with what they got. Certain documents, like the W-2 and 1099s are checking right away, and they will adjust your tax if there is a discrepancy. Other details are reviewed on a longer time frame, and it might be September or later before you hear from them if they come across something to adjust your taxes from where you calculated them.
If you are going to have the taxpayer wait for IRS to calculate the tax, it will delay the final determination of refunds or taxes owed much later into the year than it is now.
Another reason why Fauxahontis’ idea is worth pie of buffalo.