The pilot program giving taxpayers the ability to file their taxes for free directly with the government is facing an uncertain outlook.
FILE - A sign outside the Internal Revenue Service building is seen, May 4, 2021, in Washington. is facing an uncertain future after a limited trial run that is facing heavy resistance from the tax preparation industry.
But the initial rollout was a success by the IRS’ metrics and overperformed goals it set for participation and user ratings. The 140,000 users were above the target of 100,000 set by the agency and 90% of respondents rated their experience with the software as “excellent” or “above average” in a survey afterward. The IRS also said completing the project came in under budget at a total of $24.6 million.
Economic Security Project, an advocacy group, conducted a survey that found 61% of Direct File users reported filing taxes was more straightforward this year compared to previous an d60% said they filed in under an hour. Few people take advantage of free filing services through a partnership between the IRS and companies, which also raises questions for some about whether the investment into a government direct file program is worth the cost. A Government Accountability Office report in 2022 found only 3% of taxpayers took advantage for the Free File Alliance service despite 70% of them being eligible for it.
“The reality remains the same today as it did the day Direct File launched; 100% of Americans can already file their taxes completely free of charge, free to the government and actually free to taxpayers,” Intuit spokesperson Rick Heineman said in a statement.
Direct File Program Taxpayers Pilot Program Tax Preparation Industry Free Tax Filing Future
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IRS Commissioner Werfel talks about Direct File, audits and IRS budgetThe agency’s leader says it has identified the problems with its algorithm that have led to a racial disparity in audits of Black taxpayers.
Read more »
IRS Issues Warning as Tax Deadline LoomsThe IRS has issued a warning about lucrative tax schemes offered by criminals that can result in serious consequences for taxpayers.
Read more »
IRS Warns Taxpayers Over Online AccountsScammers frequently target taxpayers in the run up to the annual federal tax filing deadline.
Read more »
IRS: You have 'options' if you can't pay your taxes by the April 15 deadlineIf you can't pay your taxes by April 15, you have 'options,' according to the IRS. Here's what to know about payment plans.
Read more »
IRS Audits: Deterrence and AnxietyIRS audits not only help collect owed taxes but also serve as a deterrent against fraud. Taxpayers often cite the fear of being audited as a reason for honesty. The IRS plans to increase audits on high-income taxpayers to crack down on tax dodgers. However, the chances of being audited are very low, with only 0.2% of tax returns facing audits.
Read more »
IRS Agent Outlines Sports Wagering Investigation Leading to Bank Fraud ChargesA criminal complaint filed by an IRS senior special agent reveals the extensive wagers, wins, and losses in a sports wagering investigation that resulted in bank fraud charges against Ippei Mizuhara. Mizuhara is accused of stealing millions of dollars from the account of Dodgers star Shohei Ohtani to fuel his excessive sports betting habit.
Read more »