I don't like Obama's income tax proposal...

[npincus]

I heard him speaking about how the IRS will calculate what we owe, and send it to us to sign off on... to cut out the hassle and expense of doing a complex return (or paying someone else to do it). I don't know about anyone else here, but I think that sucks... we're supposed to entrust the IRS to figure out what we owe? So if we dispute their numbers, then we have to substantiate (for example) every itemized deduction- like a mini audit? I don't exactly think the IRS will choose the path which generates the least amount of revenue for their coffers.

What do you-all think?

Am all for Obama, but this proposal sucks.

[tabatha]

1. It will be optional.

If you don't agree with what is sent, you can do it yourself.

It will be based on previous returns.

For me, it would be a boon - because from year to year my tax items do not change much.

[NotThisTime]

2. I don't think it's a bad thing, it is good for those that don't have deductions, those that do have

deductions will file per usual..... just send your return back with the IRS letter or postcard.

This helps a great many modest and middle class workers who do not itemize.

[question everything]

3. This already exists

for simple tax returns.

After you plug in your marital status and any dependents, and income and taxes withheld, it says that the IRS can calculate it.

I suspect that this idea, and many more, eventually will die in Congress.

[Indenturedebtor]

18. Maybe, depends on how he "works it"

The great advantage of having a spectacular salesman for President would be that he could use the bully pulpit to get a lot of things done. "I asked Congress to do this to help all of you and they haven't done anything about it."

[whistle]

4. Correct because 60% of tax payers cheat

[klyon]

22. deleted

[smoogatz]

5. Got a link?

I doubt this proposal would apply for those who itemize. The majority of tax-payers (around 65%) don't.

[npincus]

6. I heard him talk about it on MSNBC.. he just gave a speech in WI

[Ysabel]

33. a recent speech in Wi / hungh...?

i live in wisconsin and am unaware of any (recent) speech he has given here please specify when / thanks...

[Ysabel]

34. ah nevermind i just found it (today)...

[truedelphi]

16. Poster above us says it is optional - so I doubt that those itemizing would

Sign up for it.

[DefenseLawyer]

7. For most people it is cut and dried.

Those of us that itemize won't opt in. The whole industry of "tax services" in poor communities for people filing a 1040ez is a giant ripoff, not to mention the tax refund loans and other scams that go along with it. As long as it is optional, I would say it is a good idea, but this is the first I have heard of it.

[napi21]

8. Do you realize how many people go to H&R Block to have them complete

a 1040EZ or people who have NO deductions to be able to complete a schedule A? I don't have the numbers anymore, but it's a LOT of people! THAT'S just stupid that they should have to pay somebody to do such a simple tax form just because they're afraid to do it themselves! It may not be MUCH money that they pay, but it's a LOT to them because most are very low income! As long as it's optional, why would you object to that?

[npincus]

9. Why would anyone have to use a preparer for an EZ form?

I filled one out for many years... and I'm no numbers genius! EZ forms practically do themselves. I don't begrudge anyone who likes and wants to participate in Obama's proposal; as long as participation is not required. My hubboie and I don't have big assets or incomes, but we both fill out estimated tax payments, and we both itmeize deductions, so I want the gov't to stay the fuck out of our business.

Again, I didn't hear the part where he explained it was "optional"- with that in mind, let those who want to participate do so by all means.

[mohc]

11. If you are itemizing then this proposal is not for you

While most itemizations are from sources that are reported to the IRS, not everything is covered. While the IRS could prefill a good portion of your itemizations, there is simply no way it could know if there are additions, and with issues like year to year carryover there would still be a lot of reviewing to do by the filer. I am fairly certain this proposal only covers those using a standard deduction. Basically there will be 3 choices for every filer, accept the IRS standard deduction proposal, reject the IRS proposal and provide your own information still using a standard deduction, or itemize. There would still be cases when a filer using the standard deduction would not use the IRS suggestion because of unaccounted for income sources etc.

[napi21]

12. Unfortunately, over the years, many people have been SCARED

of making a mistake when dealing with the IRS! I agree with you..."Why would anyone use a preparer for a 1040EZ?" BUT, there really are a lot of scardicats out there who do! I've always done my own taxes, and I find it GREAT that they've come out with all the Tax software. Now I don't have to research all the damn changes the tax laws go through every damn year!I've also completed tax returns for quite a few friends & neighbors...just as a favor. There were many times when I completed them in less than 10 minutes and wondered why they even asked me to do them, but when I asked and tried to show them just how simple it really is, they ALL told me, I just don't want to touch it! I'm a mechanic, or I'm a waitress, and I don't do that kind of stuff!

[Cant trust em]

10. Doesn't the IRS essentially calculate what we owe anyway?

I have no idea what I owe until I get my return.

[ContinentalOp]

15. Yeah, if you're just taking a standard deduction, it's just a simple bit of math.

A computer can do it in 30 seconds. No reason why the government shouldn't do this. They do it anyway to double check your numbers.

[Liberal Gramma]

13. I thought he said it would be an option.

I like the mortgage proposal for non-itemizers, though, and the dispensing with income taxes for seniors making less than 50K.

[FrenchieCat]

14. I believe this as an option intended to benefit low income Tax payers......

and it makes sense. H&R Block charges about $150.00 for a return that takes 5 minutes to do.

Why have low income taxpayers forced to pay that?

Certainly, currently, a person can go to the IRS and they will do it for them (if it is a short form)....but the point is that folks have to take time out of their day, when an IRS office is open to get it done, which for some, would be one more additional hassle.

As an accountant who also prepares income taxes for a living, I can attest that it will be helpful to those who most need it.

It is unfortunate though that you didn't understand the plan clearly and chose to proclaim that you didn't like it. It may mean that others won't as well.

PS. Maybe in the future, when you don't like something, you can ask what others think of it without the headline appearing as a negative statement (of fact). After this long primary season, I recoil when the headlines here suggest negativity right off the top...in particular if it isn't really truly warranted.

[truedelphi]

17. You got it. The IRS is not necessarily the Big Meanie that it is touted to be

If you want a Big Meanie, try and deal with the California Franchise Tax Board. Little in the way of staff, ultra confusing forms, no help when you have questions and huge penalties. Like them locking you out of your business!

[FrenchieCat]

20. I'm in California! I know.

Hell, if one doesn't file, the FTB will file for you, normally with outrageous figures that ends up having you owe 10X as much as the reality. Guess it is their way of getting folks' attention. :)

[truedelphi]

21. It's gets folk's attention, so much so that they move out of state!!

So you gotta wonder what good it does them.

Some three years ago the Franchise Board had a hissy fit over people who were non-filers. I was living in Marin County at the time, and the local news paper started in with headlines - 28% of all Marinites are tax scofflaws.

Just as the article stated, a few months later, we got a notice that we had sixty days (or maybe it was ninety) to file our state back taxes.

It was a nightmare - but in two weeks of doing nothing else, I learned everything a human could learn abt our situation. We filed and got HUGE amounts back.

I wondered if the other 27% of Marinites also got huge amounts back. You would think they would simply simplify their system, have a dozen staff or so manning the phones and try to be co-operative rather than annoying.

[Retrograde]

23. having dealt with both

I have to agree. We once had the IRS question some deductions: we sent them back a letter explaining our reasoning and a short time later got a brief "You're right" reply. Clearing up the same matter with the franchise tax board took over three years of sending form letters back and forth - if they can keep sending me the same ones my computer can keep sending them the same ones - until, frustrated, we re-filed the exact same numbers, which they liked.

My favorite TFB bit of nonsense: if you file electronically you're supposed to print out the forms, sign them - and file them away until some undefined date. Can't remember if we did that this year.

[truedelphi]

24. The IRS recently questioned us, decided we were right and then they ADDED

an extra nice chunk of change to certain amounts I had left out.

It feels good to expect a refund for X amount, and get instead, X plus Extra!!

[truedelphi]

25. You said:

"if they can keep sending me the same ones my computer can keep sending them the same ones - until, frustrated, we re-filed the exact same numbers, which they liked."

THat reminds me of a story in some magazine, a woman paid off her credit card balance, and was contacted by the credit card company for owing $ .00 They were giving her 30 days to pay it or else penalties would kick in ($ 29 a month.)

No matter who she talked to in the organization, she couldn't get anywhere, Until she sent in a check for $ .00

Then everything went back to being hunky dory!!

[cottonseed]

19. I would just consider this leveraging of existing technology.

They already do it to some degree. I don't see a problem with it. Being self employed my taxes are complicated and that's why I use a tax guy, but I don't see why someone with no deductions and filling out an EZ needs to pay HR block for the same thing that can be calculated by the IRS.

[FlaGranny]

26. Hey, didn't Elvis do that years ago?

Have the IRS fill out all his tax returns, that is? I heard it as an option, though. Simplified forms for you to fill out or you could have the IRS do it for you.

[glowing]

27. I don't like it, but some people don't know how to fill it out.. I guess he's

going on the assumption that the govt should help you, not screw you.. Maybe that's what he's planning on doing.. bringing some human element back into govt.. but I would opt out on that one myself.

[pansypoo53219]

28. the IRS

has given me more back than i figured a few times, tho during bush, made some big booboos. but they fixed it.

[Nye Bevan]

29. This is the system in the UK and it works very well

In the UK you only have to file a return if your tax affairs are fairly complicated. Average working people with a salary and interest income do not have to do anything; the Inland Revenue does all of the calculations and adjusts your withholding as necessary. If you end up overpaying during a year your withholding the following year will be lower, and vice versa. (You do have the option of filing a tax return if you want to. And if you do, you have the choice of calculating your tax bill yourself or having the Inland Revenue do the calculations for you).

I was surprised when I first came to the US that pretty much everyone has to file their taxes. It's good that Obama is looking to put an end to this for most people. His proposal is only bad news for the tax preparation companies like H&R Block.

[JoFerret]

41. Thank you

This idea is a good one.
Probably has zero chance of happening for at least 20 years but someone has to start it the idea...

I am sure GOP will have a field day however.
But - so what?

[Youphemism]

30. You like a system so complex it takes an accountant to figure out your bill?...

This is one area I don't expect Obama to fix well. We have a long history of only adding to the tax code, making it more and more complex, to the point it takes three guys to figure out how to deduct the jock itch powder you use to seal a weatherstripping leak in your home office.

Personally, I think it's a national shame that we have a system so complex that you need to hire someone to figure out what you owe. As others here have said, you can already have the IRS calculate your bill -- like the used car salesman who, when asked, "How much does it cost?" replies, "How much have you got?"

I *do* want to receive a bill. Not because someone at the government screwed me over, but because the system has been simplified to the point that my tax liability is no longer a subjective number.

Until that point, it's hard to argue that anyone can make the tax billing system much worse than it is now, anyway.

[MH1]

38. You can seal a weatherstripping leak

with jock itch powder?

Wow. The things one learns on DU. :)

Not that I keep jock itch powder around....

[JoFerret]

31. It's a good idea

Will undoubtedly freak republicans and especially those that cheat on their taxes.

[Hope And Change]

32. It`s a very good idea because it will save you a lot of time.

[OzarkDem]

35. Sounds like a "hard - sell" with voters

No way, they're not going to like that.

[Liberal Veteran]

37. Thus the "optional" part.

[JVS]

36. Too bad for you.

[barack the house]

39. I thought he proposed to make it more straight forward to do taxes.

[ChimpersMcSmirkers]

40. I thought he said that it would be for those who take the standard deduction.