What are prepopulated tax returns? Q.What are prepopulated tax returns? A.Advancements in technology, greater availability of third-party information, and tax simplification have enabled tax authorities in many countries to “prepopulate” taxpayers’ returns—that is, the tax authorities at least partially complete tax returns before transmitting the forms to taxpayers. In the United States, however, the IRS does not prepopulate tax returns. Read more about What are prepopulated tax returns?
What is a wealth tax? Q.What is a wealth tax? A.A wealth tax is imposed on the value of some or all of a taxpayer’s assets, such as stocks, real estate, and businesses. At the federal level, the United States does not have a wealth tax, and many other countries have repealed wealth taxes because of administrative challenges. Read more about What is a wealth tax?
What are the benefits and drawbacks of exact withholding? Q.What are the benefits and drawbacks of exact withholding? A.An exact-withholding system could ease the burden of tax compliance on many individuals, especially if it were accompanied by substantial simplifications to the tax code. Potential drawbacks include a heavier administrative burden for those charged with withholding income tax and for government collection agencies. Read more about What are the benefits and drawbacks of exact withholding?