Annual IRS rant

The cost of complying with the US tax codes probably reduces GDP by a few per cent. Businesses leaving the USA for friendlier places cost a lot more.

We use two CPA firms to do our taxes. It's bad enough just collecting the paperwork for them.

Another 45 minutes: Schedule D (Form 1040), `NetSTAndLTCapitalGainOrLossAmt` or `AllowableLossAmt` must be equal to `CapitalGainLossAmt` in the return unless Form 8958 is present in the return.

What the hack? Form 8958 not found. If they should be the same, why not just fix my data entry error.

Submitting the third time.

All my issues are data processing errors. They could be fix if IRS got the right computers and programmers.

Not really, i still have to manually enter data to the CPA's database. I am just a manual processing unit to transfer part of IRS's data to another part. IRS already have all the data from my employer and broker. They know how to check in the error checker, why not fix them in the data entry web server.

Got in the third time!!! Last year, i did not have the right last last year AGI for verification. Had to request by mail copy of my previous return. Wait a week to get it and resubmit. Before that, also slow mailed a copy before April 15. Of course, got a courtesy letter from IRS regarding the duplicated submissions.

All these wasted paper and time. Vote for me. I'll fix the IRS.

I used to write software for one of the big accounting firm. I am as good as the accountants. But i am still lousy in data transfer/entry.

I have a separate C program to keep track of them. I am following letter of the law to report what the broker reported and not to report what the broker did not report. Image how many other people are evading tax on this big hole. Congress did not say option gains are tax free. I want to fix the system, not just my tax evasion.

The difference in my case is that IRS already has all the data, but in different databases.

But i am reporting what you (IRS) got in your data, just not reporting what you don't have. It's IRS's job to make sure brokers report properly, not mine.

Yes, i agree. If I get caught, i'll pay the tax and ask the broker to pay the penalty

It's not fraud, just oversight on part of the broker.

I encourage anyone to check all brokers. Could be millions from the industry, but just peanuts for my case.

What the pro-tax crowd refuses to admit is that all this effort spent to comply with overly complex tax codes is a drag on productivity. And this is NOT an insignificant drag - it could be as much as 1.2% of GDP:

Compliance is annoying but the cost is small compared to lost jobs from industries moving production offshore, or just going out of business because they can't compete with imports.

The combination of taxes, environmental policies, and unions has killed giant industries. The result is trade deficit, more worldwide pollution, and lost jobs.

The US needs a national sales tax and no income taxes, especially no income taxes on corporations. Imports would then generate taxes, and US companies would be more competitive.

You are right, of course, but if a national sales tax is enacted it would be IN ADDITION to the income tax (and all of the state sales taxes), not an alternative. There are just too many vested interests in going to a flat tax.

Yes. A national sales tax would add hundreds of pages to our tax code and eliminate none.

The "people" are stuck with the decisions of the bureaucrats and politicians, who prioritize buying votes with tax preferences and other giveaways. So, it is YOU that is missing the point.

Until we get a better system, we have to live with the existing one. My point is that IRS can make our life a lot easier by automating their record systems, i,e, W2, banking and broking data into tax data. Why are we forced to re-enter data from paper that were already transmitted to IRS electronically. This is not sci.paper.design.

Well, I have good news for you: these records have ALREADY been automated. I have recently done two tax returns, my own and my daughter's, and MOST of the data was automatically loaded into TurboTax. The one that wasn't were some restricted stock donations (RSD) that my daughter received. There, we had to go and look up the price of the stock after transfer and sale. The company COULD have done this for her, but didn't.

That said, I no longer itemize because of the Trump tax cuts, which are due to disappear in a couple of years. If I have to start itemizing again the situation could get MUCH WORSE! For example, I will have to track ALL of the state sales tax I pay because the automatic allowance by the IRS is about HALF of what I actually pay.