Friday, May 19, 2023

The government will help

One of the elements of the Inflation Reduction Act was that the Internal Revenue Service got $15 million to set up a direct filing program, and they are making moves toward just that!

By next January, a small group of taxpayers could take advantage of the fledgling system, which would allow American taxpayers to file their returns digitally and for free. The government is setting up software to save many people the hassle of sitting at their kitchen table with a pocket calculator, punching in their 1040 numbers, or going to "Taxes 'R' Us" and drinking lukewarm coffee in a plastic cup while a second-year accounting student whips up their return.


As we all know, the only thing better than having one federal agency work out a solution is having two agencies put their heads together for a solution. This program is being developed by the IRS and the U.S. Digital Service, the "White House’s technology consulting agency" of which I had never heard.

“There’s something very important about the fact that even beyond making it easy and beyond making it free, this is something you could do directly with your government,” said Gabriel Zucker, associate policy director for tax benefits at the advocacy group Code for America, which has constructed its own tax filing prototype.

There is already a group of companies that provide free e-filing for taxpayers below a certain income. It's called IRS Free File. 70% of us qualify for it; fewer than 3% of us use it.

 It's a taxing situation.

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