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Comment by toomuchtodo | Hacker News Reader

https://en.wikipedia.org/wiki/IRS_Direct_File

You are trying to solve a politics and people problem with non deterministic, unnecessary technology.

“Why does the system insist on inefficiency to suck $80B/year out of taxpayer pockets?” is easy to answer. That is the purpose, by design.

https://en.wikipedia.org/wiki/The_purpose_of_a_system_is_wha...

If we want better outcomes and systems, we need to elect better people. It’s that simple. Better luck next time.

https://fedscoop.com/democrats-bill-would-bring-irs-direct-f...

https://www.warren.senate.gov/wp-content/uploads/media/doc/b...

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> You are trying to solve a politics and people problem with non deterministic, unnecessary technology.

But blockchain will solve political corruption

This was a joke, right?

> You are trying to solve a politics and people problem with non deterministic, unnecessary technology.

Exactly this.

https://www.gao.gov/products/gao-25-107611

During fiscal year 2024, IRS spent about $1.5 billion to modernize systems that handle some of its most critical taxpayer services and business functions.

...

In March 2025, IRS paused these programs to reevaluate priorities and start new IT modernization efforts.

This pattern has been repeating for decades.

Spend billions. Throw results in trash. Repeat.

Also, lets not forget, 99% of the IRS could be abolished with a simplified tax code and process, and the reason that doesn't happen, is because then 99% of grift would stop as well.

If government is the wizard of oz, the tax code are the levers behind the curtain that get pulled to modify the publics behavior.

If private companies are handling electronic filings, that private sector activity is taxable. Its an asset to the IRS. If the IRS is doing it internally, its a liability and an expense.

Yes, I said it.

Your work, your transactions, your expenses in complying with the law, your penalties for non-compliance, your headaches and suffering, etc, etc etc.

These are all assets to the IRS. You serve them.

The pattern doesn't hold. In 2021, they spent ~230 million. 2010 to 2021, they spent between 260 to 320 million per year.

The only reason that billions are being spent today is that in 2022, the Inflation Reduction Act (IRA), granted $80 billion mandatory spending boost for the next 10 years in order to modernize tech for the first time in 60 years.

The goal was that if they could identify people who were underpaying on taxes, they'd be able to recoup that benefit, and at the same time reduce inflation. This is a strategy that China has taken, and is currently using to great effect by identifying off-shore tax shelters and shadow companies that benefit the ultra-rich then taxing them as they always should have been.

As for the US, all seemed to be going well until Doge stepped in and began to claw back funding, so the IRS was forced to change its initiatives to fit the current administrations theme.

I doubt we'll be seeing any tax shelters unveiled soon.

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