The Biden administration is still pushing for a direct e-file system for taxes, despite a recent internal study showing that Americans overwhelmingly prefer commercial tax preparation software over an IRS-managed system.
The study found that only 15% of Americans would use an IRS direct e-file system even if it was able to prepare state returns and provided the same functionality as free commercial software.
This is alarming, given that the Inflation Reduction Act requires a truly nonpartisan, independent, third-party review of the feasibility, cost, and taxpayer opinions on the matter.
House Ways and Means Committee Chairman Jason Smith, R-Mo., said that the IRS needs to be transparent about independent findings, and taxpayers must have choices that work best for them when preparing their taxes.
Takeaways:
Americans overwhelmingly prefer commercial tax preparation software over an IRS-managed system.
Lack of trust in the government is a key reason for this preference.
The IRS would need to include a feature allowing taxpayers to file state returns along with federal returns to make its e-file more attractive.
Only a minority of Americans who file complex returns would prefer a direct e-file system.
Taxpayers must have choices that work best for them when preparing their taxes.
Commentary:
The Biden administration’s continued push for a direct e-file system for taxes is misguided, given that Americans overwhelmingly prefer commercial tax preparation software.
The IRS needs to be transparent about independent findings and must provide taxpayers with choices that work best for them. Taxpayers must be able to choose between commercial software and an IRS-managed system, and the IRS must include a feature allowing taxpayers to file state returns along with federal returns to make its e-file more attractive.
The IRS needs to focus on building trust with taxpayers, rather than trying to gain more power through a direct e-file system.
source https://www.foxnews.com/politics/biden-admin-steamrolled-internal-study-pursuit-key-tax-priority