Taxing Agency Errors

[David1980]

Number one the users of this board don't like it because there would be more self preparers. Number two it is not politically feasible because everyone wants to keep their deductions and credits and eliminate the ones they do not qualify for.

It would put me out of a job, short term at least, but I'd love to see us adopt something like the Japanese tax system.

Once you eliminate virtually all deductions and credits, taxes are so simple most people never need to file a return. Just have the correct amount of tax withheld. Like many cities here that have a city tax and the correct amount is withheld, so the employee never files a city tax return.

Like you said though, people do not want to lose their deductions. And politicians love to control people through tax benefits. Want to encourage religion? Well gee, just make contributions to a church a tax deduction. Want to encourage children? Tax benefits for having children. Etc... We use the tax system to encourage the behavior that we see as good. Simplify it, eliminate those, and how would we manipulate people then!?

[JohnH]

IRS mistakes & errors - job security for us.
As far as I know, I've never lost a client due to an IRS error, and I've gained a few new clients because of some. Along the way, I've had a few laughs over their mistakes.