(March 19, 2023 at 2:13 pm)Rev. Rye Wrote: Something that never came up when I was taking my Income Tax Accounting class: The IRS already knows exactly how much you owe them for a given year.
Only if all of your income is reported by third parties such as an employer, bank, brokerage, etc.
For the vast majority of workers this is true. It becomes less true the less your income depends on such sources. I had a stock transaction where only the sale was reportable, IRS has no way of knowing what the cost basis was. Yes, the area is rife with fraud.