It's a bizarrely simpleminded and incorrect meme, then.
The government doesn't know the exact answer - if they did we wouldn't have to file at all. Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus? These all affect taxes. One could argue in a dystopian way that technically "the government" as a whole does know these things, but suffice to say, the IRS doesn't, necessarily.
The whole point of filing is that our tax code is ridiculous. We shouldn't get mad at filing, but at our ridiculous tax code. But it'll never be fixed, there's way too much pork stuffed in it from both sides.
Also, nobody files 100% correct taxes. Show me the person, I'll show you the crime(so to speak). You do not go to prison for making mistakes!
> Have a kid? Buy a house? Go to college? Make $60k selling illicit drugs on the black market? Get a $200 bank signup bonus?
Lmao in Australia, other then the drugs, yes the government knows because everything is reported to them.
America is just behind.