Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First, lets be clear that we're NOT talking about those who walk out of H&R Block with a $7K check, thanks to the EITC or other tax credits.
So, then, why should the IRS pay interest when filers are free to get a minimal refund instead of opting for a large one because they can't manage their money?
I will agree that interest should not be paid on EITC-derived refunds. That's not the taxpayer's money, that's just money coming from the gov't.
Congrats on being perhaps the 10,000th CD poster to post this kind of red herring (i.e. logical fallacy). You issuing me a massive homework assignment does not constitute a response to any of what I have argued. I'll wait for a substantive response.
10,000 huh, do I get free C-D for life?
Now I don’t know which is sadder, that there are 9,999 other ignorant posters that have posed ridiculous points of view that necessitated that kind of response or that you’ve done it 10,000 times. Either way, it’s not good.
The homework assignment, as you call it, was obviously rhetorical. The point was to highlight the enormity of the task the IRS is charged with, that you’re so flippantly calling lying, cheating and stealing.
What’s telling though is that people are crying that they (a) had too little withheld and owed money with their tax return, and (b) had too much withheld and gave the government and interest free loan. That indicates the IRS has gotten it just about right because it’s completely impossible to have a one size fits all that’s perfect in every situation.
Contrary to the popular belief of some (including you it would appear), there is, and should be, personal accountability in this country. The government cannot take care of every aspect of your life for you. Sometimes you just have to suck it up and figure things out for yourself if they’re important to you.
I will agree that interest should not be paid on EITC-derived refunds. That's not the taxpayer's money, that's just money coming from the gov't.
what about foreign tax credits, R&D credits, min tax credits, education credits, jobs credits, energy credits? Those are all instance where the money is coming from the credit, are they treated differently?
Tax forms wouldn't still be "fill-in-the-blank" if they wanted you to break exactly even, or even wanted to give you that option to consider, among many.
The fed is perfectly happy letting people think they need to "claim zero, so they get a return, and don't have to pay" until they settle up at the end of the tax year.
Because that's as far as most people think into their own taxes.
They will no longer be simple. Because there are so many folks out there that make no effort to learn how to manage their own money, the IRS is coming up with a new W-4 form, for 2020. I've seen it. Good luck to them filling that form out.
Tax forms wouldn't still be "fill-in-the-blank" if they wanted you to break exactly even, or even wanted to give you that option to consider, among many.
The fed is perfectly happy letting people think they need to "claim zero, so they get a return, and don't have to pay" until they settle up at the end of the tax year.
Because that's as far as most people think into their own taxes.
Many of us pay estimated and have no idea how we will end up ....last year saw the markets fall the last quarter offsetting lots of booked gains ...we ended up having 8k due us back .... I just have them keep it since I have to send it back for estimated anyway ...that 8k was combined federal ,state and local taxes
I always do my own taxes; I have for years. I aim for a small refund so that I don't have to mail a check to the IRS. This year I procrastinated and filed in April. Normally I'd expect the refund check to arrive in about 6 weeks, but this year it did not show up until July. The IRS kindly included an interest payment, which I presume was due to the delay.
Should they have to pay a similar interest payment for all income tax refunds? They're holding your money for upwards of one year, yet paying you zero interest. Any accountant or economist will aver that a tax refund amounts to an interest-free loan from taxpayer to IRS.
So this is kind of a scam by the IRS, albeit a voluntary one. You can arrange your affairs such that you get zero or little refund. But they are taking advantage of people who are econ-illiterate. Much like the payday loan people, but on a much more massive scale.
What do you think?
IRS does pay interest when they should do so. IRS is not the Devil.
what about foreign tax credits, R&D credits, min tax credits, education credits, jobs credits, energy credits? Those are all instance where the money is coming from the credit, are they treated differently?
Obviously interest should be paid only on money deducted from worker pay and effectively held in escrow by the IRS (emphasis for those who nitpick semantics).
Refund money from tax credits would not constitute an interest-free loan, and therefore would not apply for purposes of post #1.
Again I am surprised that so many posters have no problem with the government taking advantage of taxpayer/citizen stupidity. Again, especially since the stupidity often is the result of failed government-run education.
It's almost as if the IRS doesn't want taxpayers to check their withholding. Look at how few press releases they put out in the last 12 months reminding people of checking withholding and making estimated payments, it's shameful.
Many of us pay estimated and have no idea how we will end up ....last year saw the markets fall the last quarter offsetting lots of booked gains ...we ended up having 8k due us back .... I just have them keep it since I have to send it back for estimated anyway ...that 8k was combined federal ,state and local taxes
It's never an exact science until the final tally, and I think because of everyone's fluctuating deductions year-to-year, it's been an excuse for a system NOT to be implemented that allows people to break even who KNOW they won't be itemizing.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
