How come the IRS doesn’t just mail you a bill if they know exactly how much you owe in taxes?
In: Economics
Because the government doesn’t keep track of how many children you have, charitable donations you’ve made, or what sort of unclaimed income you may have, all of which affect how much taxes you pay. It also doesn’t keep track of how much money you make in general, so the taxes that are withheld from your paycheck are just an estimate. At the end of the year you may be owed money back. You may owe more.
They do have access to your banking stats so if you try to cheat they have passive systems to scan for that, but even then they won’t know how much you owe. They’ll just send out an accountant to dig through all your finances and it won’t be pleasant.
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