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liberal-advocates-rally-behind-irs-tax-filing-plan

Liberal Advocates Rally Behind IRS Tax Filing Plan

The Internal Revenue Service (IRS) wants to create a government-run tax filing service, which critics claim would give the agency excessive power. Left-wing organizations and Democrats in Congress support the concept.

On Capitol Hill, lawmakers are actively opposing or supporting the new tax filing scheme, known as direct file, which, if put into effect, may have a direct impact on millions of Americans each year.

A massive spending plan supported by Democrats last year called the Inflation Reduction Act includes $15 million for the IRS to investigate developing a free direct tax-return system. 

The law specifically mandated that a feasibility study be conducted by an impartial third party to investigate the idea’s viability and had the IRS submit a report to Congress that evaluated the feasibility study, the cost of implementing such a system, and survey-based taxpayer opinions.

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Critics Question IRS’s Actions on Direct Filing

liberal-advocates-rally-behind-irs-tax-filing-plan
The Internal Revenue Service (IRS) wants to create a government-run tax filing service, which critics claim would give the agency excessive power. Left-wing organizations and Democrats in Congress support the concept.

Over the previous three months, IRS Commissioner Daniel Werfel repeatedly assured lawmakers that no decision had been made regarding direct filing and that the organization would consider the matter, communicate with Congress, and await the report before deciding how to proceed.

Nevertheless, the IRS had been covertly creating a working direct file prototype before presenting the report to Congress, as the Washington Post revealed in its original investigation in May. One day following the Post’s discovery, the IRS released its final report. By January 2024, the start of the filing season for 2024, a small subset of taxpayers will have access to the IRS system in a test program.

Critics, particularly Republicans in Congress, criticized the IRS for developing a prototype prior to the publication of its report and the results of the third-party study, claiming that this implied a predetermined outcome to move forward with the system regardless of the results and that the agency was doing so without explicit consent from Congress.

The IRS hasn’t made it known that it appears keen on expanding its direct file program to include state tax files as well as federal ones.

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Source: www.foxnews.com

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