[PeterPrinciple]

Why would they pass a law making it illegal for the IRS to have a free, online tax preparing service for taxpayers?

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One good reason is that private preparers are a form of checks and balances for IRS interpreting the rules their way.

[HotHunt]

".... IRS interpreting the rules their way..."

You can contact the IRS with the same question about your tax preparation ten times and you will get ten different answers....from the same agency.

So much for interpreting the rules their way.