• Lung@lemmy.world
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    6 months ago

    Old meme, but (1) you don’t go to prison for making a mistake on your taxes in America — you have to do a big fraud (2) no, the government doesn’t always know how much you owe, they only know stuff like domestic W2s and what banks file. There is a huge amount of ways to make income outside of that

    • ChapulinColorado@lemmy.world
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      6 months ago

      I’m guessing 50% of individuals would be covered by just those 2 methods. Other methods would quickly follow once people realize how the rest of the world does not cater to crazy and the ones they can legally bribe (“lobby”).

      • deweydecibel@lemmy.world
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        6 months ago

        It doesn’t matter if 50% of people would be covered by the information that is submitted to the IRS, the point is the IRS does not know that. when you do your taxes, you are telling them that there’s nothing else, but until you filed, they could not assume it.

        And it isn’t just about the lobbying, it’s also just about conservatives in general. They do not want the government getting maximum tax income. They have crippled the IRS countless times over the last couple of decades, choking off their ability to ensure the government is getting the tax money it is owed. It doesn’t matter what new methods could be employed to ensure that nobody ever had to file their own tax returns, the point is the IRS is not funded and staffed enough to manage that.

        The IRS doesn’t actually check most tax returns. They audit a certain number randomly every year, but they don’t check them all. They can’t with the resources they have available. They are taken on good faith for the majority of Americans every year because the IRS can’t check the sheer scale of them in a timely manner. If something looks really off, so much so that it triggers something in the system, they’ll take a look, but for the most part they’re trusting the fear of an audit to keep people honest.

        Keep in mind that the majority of the countries that you’re referring to are dwarfed by the US. It is substantially more complicated and more expensive to manage federal income tax returns for all 50 states than it is for, say, Germany.

        • Blue_Morpho@lemmy.world
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          6 months ago

          The IRS doesn’t actually check most tax returns

          That isn’t true. They check all tax returns based on W2, 1099’s and other documents they receive from corporations that paid you money.

          An audit is completely different from the automatic checks that make sure every bank record of interest and stock sale lines up with what you claimed on taxes.

          If you miss any stock sale or any reported income, you will get a computer generated letter from the IRS for the amount you owe. If you pay too much by accident, you will also get a computer generated check back from the IRS.

          I make a mistake every few years and get a bill with fine or a check from the IRS. I no longer stressed about taxes because I know they will correct it for me in a few months anyway. The fine is small because I’ve luckily never made a big mistake. I’ve gotten back large checks for years I forgot I paid estimated taxes and overpaid my taxes.

        • Habahnow@sh.itjust.works
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          6 months ago

          I feel you’re kinda talking past ChapulinColorado’s comment. He’s indicating that for many people they would should have a simple tax filing process where they don’t receive money outside of what’s reported to the IRS already. Many workers only have a W2 and use the standard deduction. They shouldn’t have to pay a 3rd party to get their taxes done, and it shouldn’t take them almost any time to file a return.

          yes you’re also right that people would still need to confirm what their income is (especially if its not reported to the IRS), but that doesn’t apply to a large section of the US Population.

        • ChapulinColorado@lemmy.world
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          6 months ago

          I am aware of all of those points, the thing is people try to make excuses for why we can’t follow the rest of the world and expect some perfect solution day 1, which will just hold us back. Gotta start somewhere.

          For the first point and point about audits, can still be handled as they are now, send people a w2 and bank reported prefilled form, ask them to add anything missing. Same as now, but less energy required to start or complete the task for most people. Kind of how most tax programs start your State income tax forms with the information entered in the federal one and what was declared the previous year which is already known and go from there.

    • deweydecibel@lemmy.world
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      6 months ago

      I remember people saying that Lemmy was going to be better than Reddit, yet here we are, with idiotic memes sharing blatant falsehoods that pander to people who can’t be bothered to think critically or actually learn anything. Upvoted straight to the top, not least of which because it’s an image.

      I miss old Reddit when, if people were going to say stupid shit, they actually had to take the time to type it.

      • LifeOfChance@lemmy.world
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        6 months ago

        I don’t like you.

        Reddit has been the same since day one. You’re just being dramatic. They had plenty of stupid and off the wall shit that went just as this has. You’re being ridiculous old timer.

      • Blue_Morpho@lemmy.world
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        6 months ago

        What’s the blatant falsehood? You are required to calculate taxes that the government largely already knows the answer. If you calculate wrong, you get a letter from the Government telling you where you were wrong which proves they knew the correct answers all along. If you don’t pay that fine, the end result will be prison.