If you’re above 18 and living in the United States, you have to file your taxes every year by the 15th of April. But then, like most people, you probably hate the process of filing and the act of paying tax in general. Why?
Here are six potential reasons.
It’s More Complicated Than It Needs To Be
In fact, filing your taxes is more complicated than any mandatory procedure should be. The 1040 form has 77 different lines and comes with an appendix! That’s in case you don’t understand the requirements.
Unfortunately, most people don’t, and so, we push it farther and farther until we can’t anymore. Filing taxes make people feel stupid, and no one wants to feel that way.
It’s Not Entirely Fair
Taxes are calculated in many different ways that it’s challenging to keep up. There are twelve different taxes, including income taxes, business taxes, payroll taxes, and even inheritance taxes.
Many people think it’s unfair to have to pay most of that, especially since there are loopholes and evasive techniques that the wealthy use to avoid paying it. If there are going to be ridiculous taxes, at least, everyone should pay them.
Corporations Are Getting Away With It, Too
According to CNBC, nearly 100 different Fortune 500 companies paid zero federal tax. Thinking about that can make anybody livid because these companies rake in billions in revenue annually. Some might even say that they reap the most benefit from the government’s expenditure.
To have them pay zero taxes is more than any average citizen can take. It’s even worse because they use systems that most people can’t, like offsetting profits and losses and accelerated depreciation.
Tax Filing Is Expensive And Time-consuming
Taxing isn’t just difficult and complicated. It also involves long hours of mind-numbing work. Some reports suggest that filling out 1040 can take you up to 22 hours of uninterrupted work. That’s if you don’t refer to online resources in-between.
Filing tax also costs an average of $290 per taxpayer. You may not hire a tax accountant, but all that time could be better spent elsewhere, and that’s where the average cost comes from. People are simply upset that filing taxes is costing them money.
Owing Taxes Has Severe Consequences
You can say all you want about taxes and how unfavorable they are. However, you still have to file them annually and on time or face the consequences. The consequences for missing your deadline range from paying a penalty fee to forfeiting any refunds you might be entitled to.
But then, the consequences don’t stop there. There’s also the possibility that you could be denied housing assistance, have your passport revoked, or even deported if you’re not a citizen.
Is There Any Good News?
Yes, there is.
More than ever, there are also reasons to pay your taxes and many resources to help you do so. For example, you can get tons of info on filing your taxes and tools to help you file them.
But then, that’s not all. The IRS is cracking down on tax evaders and people who squirrel funds in offshore accounts. Tax evasion isn’t fair to hard-working citizens, and everybody knows it.