How come the IRS doesn’t just mail you a bill if they know exactly how much you owe in taxes?
In: Economics
They are not allowed to. This is how it works in most other countires. They send you a prefilled tax return based on what they know. You then make any changes to this as there may be a few things the IRS does not know until you tell them. Based on this they will calculate your taxes and send a bill for the remainder unpaid taxes or repay you any overpaid taxes. But in the US there are laws against having the IRS help people fill inn their tax returns in any way. There are IRS employees who have been fired for violating these laws. And even if they were allowed to help you they do not have the funds to do this for everyone, they bearly have enough money to collect and process the data for a few tax returns so they have to trust the information returned in most of them.
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