Taylor: Why the IRS doesn’t offer its own free online tax software — and why it should

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Taylor: Why the IRS doesn’t offer its own free online tax software — and why it should
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Reviewing the story of why free tax filing hardly exists. Preparing federal income tax returns for most people should be free and easy. This might get better in the future.

Happy federal income tax filing day. To celebrate, let’s raise our voices to say why free tax-filing software provided by the federal government should be available to anyone who wants it.

The annoying part of having to pay to file federal tax returns is that for a majority of people, the IRS already tracks their income with a W2. When the IRS moved to negotiate for a different and presumably better taxpayer experience, the two largest private software companies opted out of the Free File program: H&R Block in 2020 and Intuit — the maker of TurboTax software — in 2021.

The Free File agreement between the IRS and the remaining private companies remains in place until October 2023, but the IRS now has the right to build and offer its own software for Free File. Hopefully, after October 2023, the IRS will create a free and simple way for the majority of filers to do their taxes. The IRS has reportedly allocated $15 million toward developing this program.

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