Free IRS-run tax filing pilot to be available in 13 states (irs.gov)

Article summary

The IRS is launching a free tax filing pilot program in 13 states, allowing eligible taxpayers to file their federal tax returns directly with the IRS for free. The program aims to test the feasibility of providing taxpayers with a new option to file their returns for free. The pilot will be limited to taxpayers with relatively simple returns and will not prepare state returns. The IRS will evaluate the costs, benefits, and operational challenges associated with providing a voluntary Direct File option to taxpayers.

Main themes

• tax filing
• public service
• government inefficiency
• private companies
• innovation
• choice
• lobbying
• regulation

What commenters say

• Some argue that if an industry exists solely because of government inefficiencies, it doesn't deserve to exist and can be replaced by a public service.
• Others believe that private companies can still provide value on top of a public service and find customers willing to pay for it.
• The complexity of the US tax code is seen as a major inefficiency that can be addressed by a public tax software.
• There are concerns that a government-provided public service could stifle innovation and limit choices for taxpayers.
• Some argue that the government should focus on fixing its own inefficiencies rather than preserving middlemen who profit from them.
• Others believe that a public service can coexist with private companies and provide an additional option for taxpayers.
• The role of lobbying in shaping the tax preparation industry is seen as a major factor in its existence and profitability.
• There are differing opinions on whether a public service can replace private companies in providing value to taxpayers.