The IRS could be on the verge of changing the way Americans file their taxes

[brooklynite]

The Hill

The IRS could be on the cusp of revolutionizing the way that Americans file their taxes.

The Inflation Reduction Act signed into law by President Biden on Tuesday provided $80 billion in funding for the agency, including $15 million to deliver a report on a free, government-run tax e-filing system that tax simplification advocates have long argued for.

But the agency is on a tight deadline to deliver.

While most of the $80 billion for the IRS in the new legislative package goes out over the next decade, the agency has only about a year to turn in its e-filing report.

Specifically, the agency has to figure out how much an online filing system would cost, the design of the system and how taxpayers would feel about using one.

[Fiendish Thingy]

1. 87,000 ARMED AGENTS!!!!! ArGle bArGle aRgLe BaRgLe!!!!

Sorry, I had a brief demonic possession; I’m fine now.

[Igel]

8. The IRS would have two sources of revenue.

The people and filing fees.

[TheBlackAdder]

21. 87,000!!!

.



.

[PoindexterOglethorpe]

2. ? I have my taxes done by an accountant who e-files, and

I get my refunds, both federal and state, within two or three weeks.

Yes, I get it that not everyone has access to e-filing, but if most of those who do have that access, file that way, it would make those who must file by paper, able to get their returns faster.

[tulipsandroses]

3. Would that be available to all income levels?

That would be welcome news for folks that don’t qualify for existing free filing programs.

[padfun]

7. The IRS currently has a link to OLT for free filing.

I've used it for two years now and it is free if you make less than a certain amount.

[tulipsandroses]

12. I know that one is limited by income, that's why I'm curious

if this one will have the same limitations. It would be nice if it was open to all. No fun having to pay fees to pay taxes. I hope this will be free to all, or at least the fee will be less than current programs.

[kimbutgar]

4. I do turbo tax every year and it's so easy and I usually get my refund check if I transmit no later

Than early March.

[barbtries]

5. could have sworn

i've been doing this for ages.

[former9thward]

6. Tens of millions have.

Apparently the IRS is unaware of the program which is on their own website.

[Wounded Bear]

9. Current e-filing is handled by 3rd party vendors, mostly TurboTax IIRC...

I was e-filing for several years back before I quit filing because my income dropped when I retired. Super easy, though I had pretty simple returns at the time with not a lot of deductions using obscure forms and such.

I suspect this money is to look into an in-house version of that.

[former9thward]

10. The question would be why?

The system is working, why try to fix it?

[Wounded Bear]

11. Cost, and I think TurboTax has been trying to get out of the contract...

not an expert, though, so don't quote me.

[brooklynite]

16. TurboTax, Tax Cut and H&R block have been criticized for misleading customers...

...as to how they can e-file for free, as opposed to paying for one of their software packages.

Want to file your tax return for free? TurboTax opts out of major program

TurboTax – which has been criticized for some sketchy tactics when it came to providing online access free of charge through the IRS site – is now shocking taxpayers by informing them that the big brand name has exited the Free File program.

The news officially was released in July, which frankly is a fantastic time to sneak in a tax change. Most early filers don't start thinking about their taxes until January or February and some are now surprised to learn online or via email of a significant change ahead for Free File.

TurboTax notes online: "Intuit has elected not to renew its participation in the IRS Free File Program and will no longer be offering IRS Free File Program delivered by TurboTax."

https://www.usatoday.com/story/money/taxes/2022/01/06/turbotax-free-tax-return-irs/9114118002/

[Voltaire2]

23. It doesn't work. TurboTax is notorious for steering

users out of the free system and into their for money system.

There are zero good reasons to have a third party with a vested interest in not providing a quality system provide this service.

[former9thward]

24. Who says you have to use Turbo Tax?

No one. There are many, many providers you can use.

[tulipsandroses]

13. It has income limitations, so not everyone can use it

I don’t mind paying taxes. I do hate having to pay a fee to pay my taxes. Hopefully it will not have income limits.

[former9thward]

15. So delete income limits.

That can be done by a web designer in less than 60 seconds and would save the $15 million.

[Deminpenn]

19. Think it's more than that

If you have to file some additional tax forms or schedules, you can't use it either.

[ananda]

14. I've been using OLT for years

Free and easy.

[Hermit-The-Prog]

17. I heard they were buying 87,000 M1 Abrams tanks to aid in tax collection.

[DET]

18. That's an ambitious schedule...

The IRS is a huge organization, much bigger and more complex than most people realize, with its own fiefdoms. “the agency has to figure out how much an online filing system would cost, the design of the system and how taxpayers would feel about using one.” I just can’t imagine that happening in one year, especially with political pressure from all sides.

[Deminpenn]

20. Bet the current IRS fillable forms could be modified

to include calculations.

[BSdetect]

22. I once tried a cartain tax return company and found it wanted over $500

My own return was within $50 of their refund estimate.

So did it myself for many years.

Now our return is so complicated we happily paid $1200 this year to a highly recommended company who we know well/

There ought to be no income limits for so called free returns.