[cragfar]

Because you could have gotten married, been blinded, and started a business grossing $900k but only netting $100k a year and they would know none of that outside of a couple of 1099s. What they did for you though is look at your return, and saw you didn't declare investment income that they knew about from a 1099.

[jedberg]

So they send you a bill and you send back a form that says "here is a thing you didn't know about that changes the math".

87% of tax filers could have their taxes filled out by the IRS because they IRS already has all the information.

[cragfar]

They definitely don't have all that information. That was my point.

[tombert]

Sure, but couldn't that be done on a case-by-case basis, and the fed just sends you a refund/bill at the end of the year that you're responsible for amending?

I'm not saying a company like Intuit adds zero utility, I'm just saying that I think a lot of taxes are simple enough to where it would be relatively easy to just give people a default thing. If the IRS gets something wrong, or is missing some info, then I think a software like TurboTax makes a lot of sense, but isn't that much more of an edge case? Fundamentally, the complexity of my taxes didn't really change in the last five years.

[cragfar]

When the 1040EZ was a thing, only 16% of filers used it. Those would be the candidates who could safely have the IRS do their return. With anyone else, there's all kinds of information the IRS has no clue about.