Tax professionals ‘horrified’ by IRS decision to destroy data on 30 million filers
So much B.S. from the tax professional community. Starting with the fact that these were not tax returns, which is always buried way, way down in the story. And notice in this article that not one single taxpayer was quoted -- obviously it's all about what is best for tax professionals, not the actual citizens who are just trying to perform one of their basic duties as a citizen.
"Missing information returns can cause a “mismatch” at the IRS, delaying refunds because the agency can’t verify details on a taxpayer’s returns" - Really? How can one "mismatch" to something that is doesn't exist? This is like saying that the IRS is going to send an automated notice because taxpayer included W-2 income on the return but the IRS doesn't have the employer's copy. I can see it now: "we are proposing to adjust your return to remove the income you reported because we have no record of you receiving this income". And incidentally, no one has reported that the SSA failed to log FICA taxes paid. And all of the withholding was reported to the IRS on actual tax returns, not 1099/1098/W-2 forms.
“There were no negative taxpayer consequences as a result of this action,” the IRS said in a statement on Thursday. “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”
Correct. Every one of the notices that was destroyed by the IRS was independently provided to the taxpayer by the issuer, so what is the problem?
"I was horrified when I read the report describing the destruction of paper-filed information returns,”"
So you're saying you will be happy as a clam when your client receives a 1099-K with new lower thresholds for 2022 calendar year, right? Because everyone wishes they received more 1099s, according to this article.
"“Small businesses stress out every year in January trying to accurately prepare these informational returns and get them filed on time,”"
With a very large number of info returns, there are actually a few extra months to file if they are efiled. Any firm that uses a tax pro and still paper files their info forms is part of the problem.
Many tax professionals make their living off of helping taxpayers get out of paying taxes. Pretending to be "horrified" when their job just got easier is the height of hypocrisy.
So much B.S. from the tax professional community. Starting with the fact that these were not tax returns, which is always buried way, way down in the story. And notice in this article that not one single taxpayer was quoted -- obviously it's all about what is best for tax professionals, not the actual citizens who are just trying to perform one of their basic duties as a citizen.
"Missing information returns can cause a “mismatch” at the IRS, delaying refunds because the agency can’t verify details on a taxpayer’s returns" - Really? How can one "mismatch" to something that is doesn't exist? This is like saying that the IRS is going to send an automated notice because taxpayer included W-2 income on the return but the IRS doesn't have the employer's copy. I can see it now: "we are proposing to adjust your return to remove the income you reported because we have no record of you receiving this income". And incidentally, no one has reported that the SSA failed to log FICA taxes paid. And all of the withholding was reported to the IRS on actual tax returns, not 1099/1098/W-2 forms.
“There were no negative taxpayer consequences as a result of this action,” the IRS said in a statement on Thursday. “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”
Correct. Every one of the notices that was destroyed by the IRS was independently provided to the taxpayer by the issuer, so what is the problem?
"I was horrified when I read the report describing the destruction of paper-filed information returns,”"
So you're saying you will be happy as a clam when your client receives a 1099-K with new lower thresholds for 2022 calendar year, right? Because everyone wishes they received more 1099s, according to this article.
"“Small businesses stress out every year in January trying to accurately prepare these informational returns and get them filed on time,”"
With a very large number of info returns, there are actually a few extra months to file if they are efiled. Any firm that uses a tax pro and still paper files their info forms is part of the problem.
Many tax professionals make their living off of helping taxpayers get out of paying taxes. Pretending to be "horrified" when their job just got easier is the height of hypocrisy.
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