Posted on 03/26/2024 3:31:43 AM PDT by Libloather
FIRST ON FOX: A coalition of 18 states is calling on the Biden administration to terminate a taxpayer-funded tax filing preparation program, characterizing it as wasteful, unnecessary and flawed.
In a letter Monday to Treasury Secretary Janet Yellen, Deputy Secretary Wally Adeyemo and Internal Revenue Service (IRS) Commissioner Daniel Werfel, 21 top financial officials from 18 states said the costs of the IRS Direct File program "far outweigh any potential benefits" and will create new issues for taxpayers and states, alike. In May 2023, Yellen ordered the IRS to move forward with the first-of-its-kind program, which is funded by the Inflation Reduction Act.
"Regrettably, Direct File is a solution in search of a problem," the state financial officers wrote. "Direct File has the potential to do more harm than good for taxpayers. It will only enable them to file their federal tax returns. Taxpayers who are unaware that they must separately file state returns will not receive anticipated state refunds this spring."
"This is significant because many taxpayers who use Direct File are likely to be lower-income and build budgets around anticipated tax refunds," they added. "Even worse, confused taxpayers who neglect to file their state returns will be at risk of incurring state penalties. Imagine the surprise to the taxpayer who becomes subject to audit by the IRS after having filed through Direct File and having felt assurances that the tax return was prepared properly through the IRS’s own system."
According to the IRS, the Direct File program – which is estimated to cost at least $2.5 billion over the course of 10 years – was first launched as a pilot in January and officially expanded to more taxpayers earlier this month. However, the program doesn't allow users to file state tax returns and is limited to some taxpayers...
(Excerpt) Read more at foxbusiness.com ...
I don't enjoy taxes.
Red States.
The Obama-Biden administration does not care. As long as central IRS control is increased. And as long as that 12 billion is spent on government workers and government sub-contractors.
It’s a scam to send money to their bundlers who are posing as developers.
In AZ, our state taxes are really complicated, quite more complicated, than the federal ones.
AZ is low taxing state, partly because there are many additional deductions and credits, not available in federal filling.
Without any help, you will be really screwed, probably overpaying a lot!
And, if you do not file, there are stiff penalties for noncompliance.
Do not use this service in AZ!
Wouldn’t it save money just by firing ‘OLYellen. There are a couple other disgusting persons in the administration who might go with her in the process. Print up all the names on one notice & save much paperwork.
Why is that? Ohio has stopped sending me tax forms and they just expect me to figure out that I have to file. At least my city sent me a post card reminding me if the due date.
Ohio has a site to fill out forms, but without tax software to walk me through it and precalculate everything, I doubt I could use the state site alone.
Probably the owners of Turbo Tax, H&R Block and the other tax prep software and tax shops are using the states as a front to complain about the Feds taking over.
Here's an idea: take out the social engineering, special credits and other BS that make taxes difficult. Go back to being able to fill it out by hand.
CTRL-ALT-DEL the whole damn thing. Taxation of some sort is needed to fund government waste, foolish spending, and various forms of corruption. That said, at least make the act of screwing citizens of their hard earned money easier. Flat tax, fair tax, argue the merits of a simpler system and try to save Americans some money. Simplify it to the point of the glorious day HR Block, TurboTax, etc join buggy whip manufacturers- and thousands of now heavily armed IRS agents are reassigned to the Department of Motor Vehicles where their special talents will prove an easy transition to their new duties.
Kidding aside, this is far too complicated. Waste of time, and we shouldn’t have to fear consequences of having not properly crossed a T or dotted an I.
Florida?
Florida doesn’t even have a personal income tax!
OTOH, I want to see the IRS die by the guillotine. Not the people, just .... Well, that may not have come out right.
What I meant to say is that I would like to see the personal income tax ruled to be unconstitutional.
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