Starting this month, the Internal Revenue Service will initiate a pilot version to build its own free tax filing program, known as Direct File. The IRS says the pilot program will help the IRS determine whether it’s feasible to offer a government-run tax filing system to more taxpayers in the future. The pilot program will take place in 13 states including Florida.
But tax watch groups are already opposing the idea.
David Williams, President of the Taxpayers Protection Alliance (TPA) says this would be a disaster for taxpayers. Williams group focuses on government spending and regulatory bills.
Williams points out that the IRS has complained about backlogs to its own systems when dealing with tax returns and cannot find millions of backup tax records.
“Voters do not trust or want the IRS to act as both tax preparer and processor or have even greater access to their sensitive financial data. Direct File is just another example of the IRS’ overreach into Americans’ lives and it will allow a further expansion of IRS’ power.
With the upcoming GOP primaries, TPA conducted a new survey and found more than 82% of GOP primary voters say they would be unlikely to vote for a presidential candidate who supports a Direct File tax prep system.
That number is up from 2022, when TPA conducted a similar survey that showed 75% of voters nationwide do not support giving the IRS new authority to prepare and file tax returns on behalf of millions of taxpayers.
Opponents of this pilot program see the IRS tax filing system as a competitor or an alternate to private tax preparation companies like H&R Block and TurboTax.
H&R Block and TurboTax have come out against the Direct File. They and other critics like the TPA, contend that a government-run system by the IRS will be a catastrophe for taxpayers and the federal tax collector should not also play the role of tax preparer.
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