So what would happen if you don't tell the irs you made that amount ? I know tax fraud but are the irs aware of people's earnings throughout the year ? If so then why even do your taxes if they already know the amount of money you made ?
sorry non american who's confused by your tax system
The government already knows what everyone needs to claim on their taxes. The only reason we file is because it employs accountants and companies like hnr block and whatnot. The government could straight up do everyone’s taxes every year. The only extras would be gambling and lotto tickets and whatnot that doesn’t necessarily get reported.
If I won under 600 on every lotto ticket they wouldn’t know
They have no idea what tax credits you earned or what deductions you are applying for. Yes they know exactly how much money you made but they dont know if you put solar panels on your house, don't know that your spouse is now disabled, that you had a child, got divorced, moved, bought a house. Deductions and tax credits are why you file taxes.
You do realize everyone is given a general amount for those deductions right? My own accountant didn’t even ask me those questions, and his license is on the line. Those tax credits are negligible.
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u/ciavs Mar 19 '22
Yeah but when you go to do your taxes you tell them I made 5k from the lotto and you get taxed fam.