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Comment by bloomca | Hacker News Reader

> A simple system of, "Here's what we think you owe, based on the information we have on hand - sign and submit if you agree" would work for most people.

They already do that -- if you calculate your taxes wrong, they will send the adjustment (they will do it both ways, pay you back or ask for the remainder). I guess they might not be aware of all the deductions, but standard deduction beats itemized one for the majority, so they can 100% automate this whole process if they decide to. For complex cases and businesses, sure, you are on your own, but at least most W2 should be covered.

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Yes, but tax filers have potential civil and criminal liability risk if they make a mistake.

Presumably much less if one pays more than the IRS calculates is owed.

Essentially both the IRS and tax filers verify correctness of the tax filer's return and the tax filer can be prosecuted if they make a mistake according to the IRS.

> Yes, but tax filers have potential civil and criminal liability risk if they make a mistake.

How is this an issue? Why would it be different under another system?

I see you posting a lot of what I think are pro-tax-prep messages but they don't seem to have any substance. Please try to take them to the conclusion of an argument. (That is, finish by connecting the facts you are posting with some assertion about the desirability of the current system, or some assertion the parent has made.)

Apologies.

What I mean to highlight is that although a mistake in filing may lead to the IRS rectifying the mistake by sending/requesting the error balance, there are other possible effects, including civil and criminal liabilities.

This is undesirable. As mentioned in many comments here, the vast majority of filers, especially those with one employer and no substantial investment income, should not be required to file their taxes and instead the IRS should communicate the calculation result and ask if the filer disagrees.

This is a classic problem related to the "you slice, I choose" false dichotomy[0]. Essentially, even assuming it costs zero time to fill out and file a tax return, any mistake at all could lead to a negative consequence to filer.

As an aside, always choose to choose and not to cut the cake :)

[0] https://en.wikipedia.org/wiki/Fair_cake-cutting

I suspect failing to report significant income to the tax authorities would be considered tax fraud in just about any legislation. If there weren't any kind of a potential penalty for failing to report or for significantly under-reporting, doing so would be potentially beneficial with no drawbacks.

Failing to report income or reporting false information for financial gain can lead to extra tax or prosecution for tax fraud where I live. I'd definitely be careful to report all income if I had income from sources that don't automatically withhold taxes, especially if it were significant.

I don't think they'll drag you to criminal court if you make a small mistake, though. But if you fail to report thousands of euros of income and the authorities get wind of it, sure, especially if it seems intentional.

I don't know if the risk of prosecution or other legal consequences is somehow greater in the US.

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