The IRS has quietly built its own prototype system to allow Americans to file tax returns digitally and free of charge, according to three current and former agency officials, essentially creating government software that could disrupt the industry.
The system was developed by the IRS and U.S. Digital Service, the White House’s technology consulting agency. It
will be available through a pilot program for a small group of taxpayers by January, when the 2024 filing season begins, said the people briefed on the matter, who spoke on the condition of anonymity to discuss internal agency conversations. Last year’s Inflation Reduction Act, one of President Biden’s chief legislative victories, included $15 million for the IRS to look into creating a direct filing program. The tax agency tapped the left-leaning New America think tank to study the matter and produce a report, which is expected this week.The IRS currently refers people seeking no-cost filing options to a consortium of companies that provide free e-filing for taxpayers below a certain income level.
For a narrower range of taxpayers, industry giants Intuit TurboTax and H&R Block offer free products that the IRS does not officially endorse. A free filing system offered directly by the federal government could upset a commercial tax prep market estimated by research firmThe system of commercial programs for online filing has served taxpayers and the government well by many accounts. Roughly 9 in 10 individual tax returns were filed digitally in 2022, the IRS reported. The U.S.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IRS, Chainalysis Helping Ukraine Track Russians Using Crypto to Evade Sanctions – Bitcoin NewsThe U.S. Internal Revenue Service (IRS) said it’s working with Ukraine to help it trace crypto transactions of Russian sanctions evaders.
Read more »
‘I thought we were going to change the world’ — Ex-money manager explains why he blew the whistle on LDS financesIn his first public comments since becoming a whistleblower, a former investment manager for the LDS Church said the faith illegally stockpiled $100 billion in investments built from members’ tithing “and the funds were never used” for good works.
Read more »
IRS Weighs Creating a Government-Run Tax-Prep OptionTax-preparation companies are increasing lobbyist funding to discourage any IRS plans to expand free help with returns
Read more »
$3,200 tax credits available for some home improvements, IRS says: What qualifies?The Inflation Reduction Act of 2022 includes credits for taxpayers who make qualifying energy improvements to their home, according to the Internal Revenue Service.
Read more »
IRS Taxes Usually Apply If Your Debt Is Cancelled, Here Are The ExceptionsWhen a debt you owe is canceled or discharged, the tax code treats the wiped-out debt as cash income to you that you must report. If you owe $500,000 to the bank, but the bank forgives it, it's as if the bank just handed you $500,000 so the IRS wants a cut. Fortunately, there are exceptions.
Read more »
Gallup Poll: Americans' Preference for Real Estate, Crypto Plunges — Fondness for Gold Skyrockets – Bitcoin NewsWhile real estate and crypto saw a decline in the latest Gallup Poll, gold nearly doubled since Gallup’s survey last year.
Read more »