How does tax collection work around the globe? Does every country have an IRS with complicated filing?
In: Economics
Every country does have an IRS. Most countries does not have as complex filing for individuals as the US though. In addition they do a lot of things to help you file your taxes. To start with companies you deal with in large sums of money such as your bank, credit card, insurance, employer, etc. have to send you a statement at the end of the year with all the information you need to file your taxes including which cell in the tax form each number goes into. So you only need to copy this information to file your taxes.
But then they also send the same information to the IRS, so when the IRS send you the tax form to fill out they have already filled it out for you. The only thing you have to do is to check that it is correct and make small adjustments where needed before sending it back. They also tend to provide you with lots of information about what each number means and how it affects your taxes. They even have hotlines you can call to get all the help you need to file your taxes. When it comes to decisions such as filing separate or joint, or to take a standard deductible or itamized, they just let you fill inn the information and then they calculate the taxes for all the possible options and you pay the least amount of these. So you do not have to make any decisions, just give the IRS all the information.
And of course the last thing that have become common is that if you do not return the tax filing the IRS just assumes that the pre-filled form is all correct. So even if you ignore the IRS they will file the taxes for you to the best of their knowledge.
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