Comment

Comment by BitwiseFool

>"There's no reason the government couldn't just tell me how much money they took each year and give me a chance to contest it if I thought it was wrong."

Behind the scenes, the IRS already has a well informed idea of how much you owe, based on the information submitted to them by your employer and a few select third parties - such as your bank or broker. The challenge is that you personally need to report additional information for things like capital gains tax on asset sales, any credits/deductions you wish to claim, and changes in your living arrangements or life status.

For the majority of people who file using 1040-EZ, you're basically just confirming what the IRS already knows from its own data collection along with some possible adjustments. It would be possible for the IRS to collect even more information, but that does seem rather intrusive and unwelcome to most American's sensibilities.

parent BitwiseFool 4 years ago

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