IRS might set up a free e-filing system (Beginning stages)
#efiling #irs
I am very excited to announce that the IRS is working on setting up a free e-filing system. I was reading the Boston Globe and they had an article about the new program the IRS is looking into. Here is the story about it so far.
More information will come out as the program gets closer to release date. The IRS is going to spend about $15 million on studying a free government backed tax filing system. This is exciting because taxpayers are tired of the lies many tax prep companies been promising to customers about free e-filing. We all been there. Where you start a free e-file program and by the end they charge you because you either made too much, you are not taking the standard deduction, or you want to attach your state returns. It feels like a low blow, when they hit you with a 60 buck fee and you are confused because you thought it was going to be free.
Just remember the tax prep industry is worth $11.9 billion as of 2022. This why the company that owns TurboTax got sued and settled to pay $141 million after getting accused of ads for free tax prep were misleading and purposefully confused the IRS-supported free file program. They used deceptive practices to steer low-income earner towards paying products.
This issue has been created because the IRS been lacking funds for decades now. The IRS partnered with tax prep companies like TurboTax and H&R block back in the 2000s and promised these tax prep companies that they will not create a government backed platform as an inclusive. As we can see the partnership has been a failed for the taxpayers. We been paying an arm and leg for the privilege to file or taxes, go figure. TurboTax left the program in 2016 and H&R block bounce in 2015.
As of today, the IRS is working with vendor Taxslayer for their free e-filing program but to qualify you need to earn less than $39,000 if you make more than that you will need to pay a $29.95 for the classic product from Taxslayer. Which is a start but it kinda of a joke.
IRS plan is to overhaul the e-filing program and create a government backed system that is easy and trustworthy. The requirement and qualification have not been declared yet, but I will you guys posted. In my opinion it going to take a couple of years for the IRS to implement anything because of lobbyist and bureaucracy. But most importantly lack of funds.
We can see the need is urgent, 9 in 10 individuals file their taxes digitally in 2021. And statistics has showed the fewer the 3% of taxpayers had used the free e-filing program from the IRS’s website not only because of the minimum income requirements but because the software just sucks. It’s a waiting game now.
*Free E-Book and Audio-Book* Check www.simplechew.com or Link http://eepurl.com/g8rBi5*** Investment 101***
SimpleChew do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.
You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Instagram: / realsimplechew
Facebook: / simplechew
Based in Boston. #honduras
Hank Henriquez
DISCLAIMER: This description may contain links from our affiliates, sponsors, and partners. If you use these products, we will get compensated - but there's no additional cost to you.