Discussion IRS Underfunded? Who’s surprised?

[Brainonska511]

This is inaccurate, taxes are complicated because of the vast number of deductions and rules available not because of the tax prep industry but because of special interest group lobbying. The entire tax code is a shit show. Focusing on "do my taxes on a post card" is completely missing the forest for the trees.

And not just special interest lobbying - Congress has spent decades using tax policy to encourage and discourage certain behaviors.

 

[herm0016]

This is inaccurate, taxes are complicated because of the vast number of deductions and rules available not because of the tax prep industry but because of special interest group lobbying. The entire tax code is a shit show. Focusing on "do my taxes on a post card" is completely missing the forest for the trees.

ok... tax law should have far less wacky rules and be able to be filed on a post card.

who likes it to be complicated? the tax prep industry. who enables it? congress and our unlimited lobbying rules they love so much. i was being imprecise, not inaccurate.

we could save whole forests if we focus on the trees.

 

[brycejones]

ok... tax law should have far less wacky rules and be able to be filed on a post card.

who likes it to be complicated? the tax prep industry. who enables it? congress and our unlimited lobbying rules they love so much. i was being imprecise, not inaccurate.

we could save whole forests if we focus on the trees.

Lol sure dude it’s the tax prep industry making the tax code complicated…..

 

[IronWing]

Lol sure dude it’s the tax prep industry making the tax code complicated…..

No, but it is the tax prep industry that is preventing the IRS from simplifying filing. Free fillable forms are getting better but could be a lot better if the IRS wasn't hamstrung by Congress. For example, the forms could be populated with info the IRS already has.

 

[akugami]

The tax prep industry DEFINITELY has a vested interest in keeping the IRS from being more efficient in how it handles the returns for the general public. They are complicit in the US not having a more simplified filing system. That's a fact.

Intuit received millions in tax breaks as part of a deal with the IRS to provide free tax filing. In return for the free filing, the IRS not only gave out these tax breaks to companies like Intuit, but it also did not develop its own online tax filing system.

Intuit, however, has been caught steering filers toward paid services, even if they were eligible for free filing. Intuit actively participated in FUD in an effort to stop the IRS from creating a free online filing system. It is clear Intuit did this to keep on sucking on the government teats as long as possible. Intuit and other tax filing companies spend millions of dollars in lobbying money. Something you don't do if it doesn't benefit you in the long run.

Intuit has now decided to no longer participate in the IRS free tax filing program, probably due to the investigations by the FTC. The IRS Is also trialing its own online filing system.


The tax prep industry isn't the only party that wants to keep the tax laws convoluted. This benefits high wage earners and corporations. The more convoluted the laws are, the more likely there is some sort of tax loophole that can be exploited by a very few select individuals.

 

[pcgeek11]

Damn free loader...

Pensions, annuities, and recently MRD from 401k have kept me paying every year.

I take the default 10% for Fed. Now that there's real interest rates, it does matter if I use the government for a piggy bank. Also, that's just one of the investments, by the way. Starting to create my traveling wish list for when MRD kicks in.

You mean RMD right? Required Minimum Distribution.

Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022).

 

[hal2kilo]

This is inaccurate, taxes are complicated because of the vast number of deductions and rules available not because of the tax prep industry but because of special interest group lobbying. The entire tax code is a shit show. Focusing on "do my taxes on a post card" is completely missing the forest for the trees.

It can be both.

 

[manly]

(this article could go into any number of threads, this one seems fine)

I'm shocked I tell you!

IRS Audit of Trump Could Cost Former President More Than $100 Million

The tax agency concluded in its long-running investigation that Trump effectively claimed the same massive write-off twice on his failed Chicago tower.

www.propublica.org

 

[hal2kilo]

Damn free loader...

Pensions, annuities, and recently MRD from 401k have kept me paying every year.

Hey man, I just spent 2 hours doing my Fn taxes. I'm no longer a free loader and am now paying taxes for ALL of my income including SS due to me receiving annuities for the first time and taking a chunk out of my IRA to pay for a mini-split. Ooouch!
Delaying owed taxes payment to the IRS until 4/10 so they can suck on it.

 

[MtnMan]

Hey man, I just spent 2 hours doing my Fn taxes. I'm no longer a free loader and am now paying taxes for ALL of my income including SS due to me receiving annuities for the first time and taking a chunk out of my IRA to pay for a mini-split. Ooouch!
Delaying owed taxes payment to the IRS until 4/10 so they can suck on it.

I e-filed this year's taxes on 3/3/25, refund hit my account today. That's probably the quickest I've gotten it back.

I have extra withheld from one of my pensions in addition to 10% on annuities, so it's not a big refund, but it beats writing a check. In the past, I've had to pull above the MRD to cover an expense, and I just have 20% withheld. Though I retired at 55, I waited until full retirement age, 66 for me, to start drawing SS. I still had W-2 wages until four years ago, part-time teaching at a college, and I paid dearly, and always had to pony up by April 15. But even while drawing SS, I was still having to pay FICA. I was careful to not work enough to impact my SS.

I never paid the IRS until the deadline, just the principle of the thing. Likewise, I don't pay bills until just before they are due, and since they are all electronic today, mail delays aren't an issue. I never got paid early, thus I don't pay early.

 

[hal2kilo]

I e-filed this year's taxes on 3/3/25, refund hit my account today. That's probably the quickest I've gotten it back.

I have extra withheld from one of my pensions in addition to 10% on annuities, so it's not a big refund, but it beats writing a check. In the past, I've had to pull above the MRD to cover an expense, and I just have 20% withheld. Though I retired at 55, I waited until full retirement age, 66 for me, to start drawing SS. I still had W-2 wages until four years ago, part-time teaching at a college, and I paid dearly, and always had to pony up by April 15. But even while drawing SS, I was still having to pay FICA. I was careful to not work enough to impact my SS.

I never paid the IRS until the deadline, just the principle of the thing. Likewise, I don't pay bills until just before they are due, and since they are all electronic today, mail delays aren't an issue. I never got paid early, thus I don't pay early.

I had 10% taken out of all of those draws. Still only covered about 50%.

 

[HomerJS]

In recent negotiations with Republicans Democrats offered no new taxes but instead to just increase funding so the IRS could effectively enforce the laws already on the books.

You will be shocked to find out the people who so frequently say 'we don't need new laws, we just need to enforce the ones we have' were not particularly interested in enforcing the ones we have.

You really think Republicans are going to even entertain any tax increases?

 

[Paratus]

You really think Republicans are going to even entertain any tax increases?

Maybe on the poor.