I have complex multi-country taxes to file (Canadian living in Canada, but with some income the IRS says is American income). H&R Block have a guy who has handled this exact kind of tax filing hundreds of times before. If I make any mis-steps in filing, the IRS is going to demand I give them thousands of dollars.
I'm not paying H&R Block $600 (CAD) to fill out a piece of paper, I'm paying for the time and experience of someone who won't screw it up and knows how to fight back if the IRS has a problem with it.
The root cause is that our tax system is overly complex and it doesn't need to be. We need to address that rather than build software to help make the complexity continue.
The point is there are millions of people that just have 1 or 2 W-2 incomes and don't itemize, and can file a straight up 1040 which is what H&R block is fighting.
In addition to you, people like me (S-corp owner) have complicated taxes and that's fine. We'll always pay. But doesn't mean there isn't a class of people who wouldn't benefit from this.
So in that case, I'm curious what the penalty is for not paying. Presumably the IRS doesn't have the power to garnish wages from Canadian banks…
It was RSUs granted in 2012, while I lived in the US, that vested over 4 years (the last of which was 2016). That counts as 'American income'. After this year, I don't have to do this ever again and plan to start doing my own taxes.
I think to fight this, we need a good robust open source solution that could possibly be made automated. Only cost I assume would be for the user to e-file.
Still, my taxes were complicated for 2014 so I was glad for the help. I agree that's ultimately what their value is, along with their promise of assistance should things really go wrong, it's just not usually top-expert help and if it can be replaced by cheap software it should be, even if overall simplification is still the best outcome.
1. http://www.huffingtonpost.com/2013/04/13/us-tax-code-has-cha...
There are a lot of complications in the tax code because with 300 million people there are a lot of special cases to account for. Adding additional complexity just for the sake of complexity seems like a non-starter.
Conservatives want taxes to be as painful as possible, to highlight the fact that the tax exists.
As soon as that non profit hit's critical mass the for profits are going to be stuck and thus stop lobbying for more complex rules. At which point the IRS can just automate the process for 95% of people.