Comment by Henchman21

5 months ago

How about we just have the gov't do the math based on what our employers already tell them and then send us a bill or refund. Why must we play this game as if the gov't doesn't know all the info already?

There is a bunch of code to import w2s from the SSA in this codebase - this did happen this year for direct file. That being said, big issues remain:

- Employers don't tell the federal government about state tax information and when they do, the government doesn't store that information

- W2s aren't due to the SSA at the opening of tax filing season and penalties aren't commonly enforced for submitting w2s on time.

https://github.com/IRS-Public/direct-file/blob/main/direct-f...

There are a bunch of us for whom it doesn't have all the info (if any, in fact).

Granted, the ranks of the self-employed are a small fraction of all taxpayers, and there's no reason the latter should be forced to do things as if they were part of the former.

  • Yep I think the Pareto principle applies: let’s knock out 80% who can just be sent a bill/check.

Because in many cases they don't know. They don't know about your self-employment income and business expenses. They might not know about your marital status and dependents. They won't know about various credits such as education expenses, solar or EV credits, etc.

  • What percentage of tax filers have a single W-2, maybe a 1099, and take the standard deduction? If I had to guess, 80%.