I can’t think of what fraud it prevents.

  • s38b35M5@lemmy.world
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    9 months ago

    Because of the particulars of US tax code, individual tax liability is a function of income, information voluntarily provided to them. At least, the accuracy of the info is voluntary; submitting a w4 is required on hiring. Since you can claim five dependents and then file with zero, the government won’t know what you owe until you file.

    Some people use this incongruency to pay almost nothing during the year and pay in at filing. Others do the opposite to avoid underpayment.

    Tax prep industry has helped to make the process disgustingly opaque, and I sure wish it was simpler.