Canada is starting to do that. But it’s “we think this is the situation. If that’s true, pay and move on. If that’s not true, file and pay. And don’t lie or we’ll mess you up.”
This is true in the United States as well, and IRS really doesn’t give a shit if you don’t owe them money and never file - the failure to file fee if you don’t owe is minimal. But you will lose your ability to get it refunded after 3 years.
Everything from upgrading your doors and windows or your air conditioner and getting a tax credit, to renting out a room and deducting that portion of your home expenses, to working a side handyman or cleaning gig, to spending some cold-wallet crypto to buy gold, to the cost basis of previously unreported gains, to getting married and deciding to file together - the IRS doesn’t know.
And some things are arbitrary, and you have to make the choice and then tell them what choice you made, and how you value it.
So… the irs knows how much you’re paying before you ever file.
They could just send you a bill.
Canada is starting to do that. But it’s “we think this is the situation. If that’s true, pay and move on. If that’s not true, file and pay. And don’t lie or we’ll mess you up.”
I think that’s this year. Maybe next.
In Germany the employer has to pay the taxes, the employee doesnt have to do anything. They are paid their income after tax directly
This is true in the United States as well, and IRS really doesn’t give a shit if you don’t owe them money and never file - the failure to file fee if you don’t owe is minimal. But you will lose your ability to get it refunded after 3 years.
I’ve only ever got refunds; they sure as hell better not send me a bill! Unless it’s a dollar bill. Those are fine.
That’s true only for very simple situations.
Everything from upgrading your doors and windows or your air conditioner and getting a tax credit, to renting out a room and deducting that portion of your home expenses, to working a side handyman or cleaning gig, to spending some cold-wallet crypto to buy gold, to the cost basis of previously unreported gains, to getting married and deciding to file together - the IRS doesn’t know.
And some things are arbitrary, and you have to make the choice and then tell them what choice you made, and how you value it.