A point I like to make is that the United States uses a voluntary assessment system to collect taxes. While some have twisted the word “voluntary” to mean that paying tax should be voluntary, what it really means is that the taxpayer gets the first crack at saying what his/her taxes are for the filing year. It is a declaration. And if the declaration looks good, then the IRS (the Service) accepts it, and, if not, there is some follow-up.
In order to make the voluntary assessment system work, everyone who is required to file has to do it. The problem in the Americans abroad community is that many people self-exempt out of the system. They say, “the number will be zero anyway.” This is different than, “I declared my income, and took advantage of the available exclusion you get when you file and meet the test, and so my income tax was zero after I filed.”
Point blank, the Service sucks at certain baseline things anymore. And one of them is not communicating with taxpayers.
That’s why I sometimes like to go back and read how it was done in the middle of the 20th century. Like in the example screenshot above, for the year I was born.
The message was written in very plain form, and the tone is matter of fact. I like how Commissioner Cohen starts out: we are sending this to you and 60 million people do this.
“A Special Message for Taxpayers
Every year more than 60 million individuals demonstrate their faith in America by filing income tax returns. The season has rolled around again and we are sending you this package of forms and instructions to help you do this.”
Next, a nice summary of what went on in 1965. Medicare was in fact a big change in tax law, but the taxes to support it didn’t kick in until later in the 1960s.
“There have been no basic changes in the law and therefore you will find few differences from last year’s forms. One exception is that the recent “medicare” legislation added physicians to all of the other business and professional people who pay a “self-employment” tax along with their income tax, in order to qualify for social security benefits.”
The 1965 form was featured as using a more modern font. No “go to our website!” and try to figure it all out. It was, here’s the instruction booklet, we’re trying to make this easy.
“We have tried to make this year’s form easier to read and more attractive by using more modern type and arrangement. Also, we have rearranged the tax tables in the instructions to make it easier for you to find the correct tax.”
You get the feeling, reading today’s headlines, that some of the computers Commissioner Cohen refers to are still in use today–or were recently. I like the part where he refers to the 1099 system and that it’s framed as the citizens getting better at reporting that income (since the Service was getting the info anyway . . . )
“Our automatic data processing system has continued its steady progress and this year more returns will be processed electronically than ever before. This system promises more uniform application of our tax laws. More improvements also have been made in the use of information from payers of dividends, interest, and other income so as to lessen mistakes in reporting such items. It has been very gratifying to see how much improvement has been made by citizens as they have become better acquainted with these responsibilities.”
More points about the from-us-to-you nature of the commissioner’s role in collecting for the Nation’s Treasury:
“Other points that need your special attention are:
NAME AND ADDRESS-If your return form is not preaddressed, be sure you enter your name and address correctly.
COPY YOUR SOCIAL SECURITY NUMBER exactly as it appears on your account card.
BE SURE TO FILL OUT EACH ITEM on the form which applies to you. Please be accurate and follow the instructions.
ATTACH FORMS W-2 to your return. If not available, please explain.
BE SURE TO SIGN YOUR RETURN.
BE SURE TO FILE EARLY-before the April 15 deadline. A hastily prepared return may have errors.
We appreciate your efforts toward good compliance and we are proud of this Nation’s record in this area. If you have any questions, please write or call your nearest district office.”
There hasn’t been communication from the leadership at IRS like that in decades. They really need to start printing and mailing out the 1040 form and instruction booklet, and having Commissioner Werfel say a thing or two on the cover.
Hoofin 