Forums » Suggestions

Why No One Should Ever File Income Taxes Again.

    • 88 posts
    May 6, 2021 10:20 AM +0430

    Why No One Should Ever File Income Taxes Again. It’s Easy For The Technology – Not So Much For The Tax Preparation Industry.

    Machine learning (ML) is killing all sorts of processes and entire business models. Areas like tax planning, preparation, reporting and documentation that are well-bounded and deductive – what those in AI call “narrow AI” – are ready for supervised machine learning. What’s taking so long? Everything’s already digital. Your personal taxes require preparation, submission and calculation, all pretty easy for smart machines (that don’t need to be all that smart to do your taxes).

    There’s a small army of consultants to help anyone who needs it. The tax preparation industry has convinced everyone that they better file their taxes perfectly or they will get audited or, worse, receive a smaller refund to which they’re entitled! But the tax preparation and filing processes have already been systematized in software. Another way of saying this is that we “know” how to plan, prepare, report and document taxes with or without the help of TurboTax, H&R Block or accountants. Whenever processes can be systematized, they can be mostly or completely automated. So we know how to automate much, if not all, of the tax preparation and filing process. Americans spend billions of hours and billions of dollars every year on tax preparation and filing. This is an unnecessary investment. pg slot

    The Old Fashioned Way

    Your accountant, Intuit’s TurboTax or H&R Block tell you that you need at least the following to do your taxes: personal information, sources of income, records of all expenses and all deductions. But all of these documents have already been digitized. They’re already machine readable. IRS already has them (or access to them). If you use a software app, you input the numbers and calculations are automatically done for you. If you hand the documents over to a human app (AKA as an accountant), the same thing happens. But why are you inputting anything? Why are you hiring someone to do what you could do or – more pertinent to this discussion – what could automatically be done for you without any human intervention? The US is way behind here: “At least 30 countries permit return-free filing, including Denmark, Sweden, Spain and the United Kingdom … dozens of prosperous countries save billions of dollars and hours annually by not requiring residents to fill out tax returns.”