IRS steps toward a new free-file tax return system have both supporters and critics mobilizing

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IRS steps toward a new free-file tax return system have both supporters and critics mobilizing
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An IRS plan to test drive a new electronic free-file tax return system next year has got supporters and critics of the idea mobilizing to sway the public and Congress over whether the government should set up a permanent program…

WASHINGTON — An IRS plan to test drive a new electronic free-file tax return system next year has got supporters and critics of the idea mobilizing to sway the public and Congress over whether the government should set up a permanent program to help people file their taxes without needing to pay somebody else to figure out what they owe.

"What we have on our side is public opinion," said Igor Volsky, executive director of the liberal Groundwork Action advocacy group. Business Your paycheck could clear faster now that the FedNow instant payment service for banks has launched That idea has faced the immediate threat of budget cuts from congressional Republicans.

Additionally, anyone can prepare and mail in their taxes for free, but the tax code is so complex that almost 50% of Americans use a tax prep company. IRS officials have estimated individual taxpayers pay an average of $140 preparing their tax returns each year."An IRS direct-to-e-file system is redundant and will not be free – not free to build, not free to operate, and not free for taxpayers," Plummer said, adding that it"will unnecessarily cost taxpayers billions of dollars.

Susan Harley, Congress Watch managing director at Public Citizen, said"we're outgunned as far as money being spent, but we have the moral higher ground" in supporting the free-file program over third-party tax preparers.

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