IRS Online Tax Filing System
IRS Internal Revenue Service will take a step forward to make electronic tax filing more straightforward and accessible a free option for taxpayers, reports The Washington Post.
It’s something sought for years by lawmakers and advocates. For many Americans, it’s really frustrating that they also have to shell out additional money for tax preparation programs or preparers because of an increasingly complex U.S. tax system beyond having to pay sometimes hefty tax bills.
“It’s definitely something we should do, and when the IRS is adequately resourced, it’s something that will happen,” said Janet Yellen Treasury Secretary at Senate Finance Committee hearing.
This program, though, has controversies, with commercial firms misrepresenting their services and low taxpayer participation rates.
In April, The Government Accountability Office reported that only 3% of taxpayers actually use the service while 70% of taxpayers were eligible for services through the Free File Alliance. The watchdog recommended finding new free filing options before the expiry of Alliance in October 2023.
With the funding in The flagship climate change and health care bill, the IRS has an opportunity to create a new system.
To explore a free tax filing system, The government tax agency for this will use $15 million from the $80 billion allotted in the Inflation Reduction Act. This platform is beyond relying on expensive private tax preparation companies and could provide American taxpayers with another option to file taxes.IRS does provide free e-filing options but due to its restrictions on qualifying returns is barely used.
Dominated by corporations for years the Tax preparation services, force Americans to spend money to file obligatory taxes yearly. IRS officials pointed out the reason is a lack of funding that’s why didn’t put a real effort into developing its e-filing system.
in July Sen. Elizabeth Warren, D-Mass. resubmitted Tax Filing Simplification Act bill that would require the IRS to create its own free online tax filing service and stoping partnerships with private tax preparation companies.
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Elizabeth Warren told The Associated Press that
“I’ve been pushing for a free tax filing system for years, and now the is on the verge of having significant funding to modernize its IT systems, which means it’s time to develop simplified filing tools laid out in my Tax Filing Simplification Act,”
Experts also say that Americans will get reliable free options while increasing the efficiency of the systems after creating a new online government system.
The Internal Revenue Service is the revenue service of the United States federal government, which collects taxes and is responsible for administering the Internal Revenue Code and the main body of the federal statutory tax law and part of the Treasury Department and is led by the Commissioner of Internal Revenue, appointed to a five-year term by the President of the United States.
Official Website: Internal Revenue Service | An official website of the United States government (irs.gov)