Skeptical CPA on Government Accounting
It's January and you know what that means: busting your butt to get your 1040 in before the rush so you can get Timmy to cut you a check before he's digging in the Treasury's couch cushions to cover your refund.
I don't need to remind dear reader why this year, in particular, it is wise to get in before the stampede. Or have we already forgotten IndyMac?
Anyway. Skeptical CPA gives us some numbers to chew on:
1. The IRS encourages taxpayers to e-file 1040s. Who does this help? Uncle Sam released some statistics in 2008. Unc said the IRS could save $40 million more a year if 80% of taxpayers e-filed. Good. Unc also said it cost the IRS $0.32 to process an e-filed 1040 and $2.69 to process one by mail. Now let's do some "cost" accounting to see if the IRS claim makes sense. $2.69 - $0.32 = $2.37, the IRS's e-filing "marginal savings". Wait. To e-file a return requires entering more data than one not e-filed. Ask your tax preparer what is your marginal e-filing cost. If he says less than $50, laugh. Would the IRS "cost" a taxpayer $50 to save $2.37? Would Pope Benedict like to see 1.4 billion Moslems adopt Catholicism?
I can't claim to understand cost accounting though I could surely fudge it enough to pass BEC on the CPA exam so I'll trust those numbers. Also, fuck math.
Anyway, let's keep this "efficiency" in mind moving forward, eh?
I am also happy to report that Timmy's squad are a bunch of geniuses. Erm, I actually can't report that, I'll get myself in trouble. I need not elaborate.