The IRS is indeed not sent all the “information they need” at all, for most taxpayers.
I don't believe this is accurate. For something like 9 out of 10 taxpayers- they absolutely do. For the remaining, it'd still be less work for
everyone to just address the exceptions.
They don’t get the detail of mortgage payments
the "payment" isn't relevant to your taxes. Only thing like interest, MI premiums, and points are.
And of course those are reported to the IRS.
It's called a 1098. Everyone who pays $600 or more in interest, mortgage insurance premiums, or points during the tax year has their mortgage issuer file one.
they don’t have any detail of state and local tax payments.
A deduction almost nobody takes anymore. But if you're in the tiny group that does, would be an example of the folks who would need to reply to the IRSes "we think you owe this much" notice with a correction.
Which would still be massively less paperwork even for them (and especially for the nearly
90 percent of taxpayers who do not itemize)
they don’t get any detail of deductions, medical expenses, other applicable deductions that the taxpayer might take.
Again, like 90% of taxpayers don't file itemized and don't deduct this stuff.
If you do, you'd
still do far less paperwork responding to a return-free-filing notice of taxes owed with ONLY the items the IRS didn't know about than the current system.
So, while for many taxpayers who have NONE of these things, they might be able to process overall taxes owed I would say for at least 30-50% of taxpayers they don’t have what is required to be truly accurate or of benefit to the taxpayer
Not remotely accurate.
Only about 11% of taxpayers itemized in 2021.
Everyone else just took the standard deduction.
And it's been that way for a number of years now since the ~2017 reforms.
So none of your exceptions would apply to, as I said, nearly 90% of filers.
They'd all suddenly not need to do any of the nonsense busy-work that keeps Intuit and the like in business.
And even for the remaining 11%, they'd still do
less paperwork having to only file the exceptional items instead of re-sending all the stuff the IRS
already has
It's better for
everyone even if it's "only" the "most" better for 9/10 people.
It's how it's done for most taxpayers in most other western countries (with some local variation between those countries) where the legislature isn't paid off by tax-prep companies to keep it overly burdensome and complex.