The American Democracy Minute Radio Report & Podcast for April 15, 2024
Today’s Script
(Variations occur with audio due to editing for time. Today’s Links below the script)
You’re listening to the American Democracy Minute, keeping YOUR government by and for the people.
The IRS has a pilot program in 12 states this year to file your personal taxes online for free without the use of 3rd party software. Wonder why it took so long? Big money lobbying.
For 2023, taxpayers in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming can try the free IRS Direct File, which can help prepare returns and file them online.
But money-in-politics tracker Open Secrets reports a coalition of tax preparation companies spent over $90 million dollars since 2003 lobbying Congress and the IRS to keep this from happening.
A 2019 Pro Publica investigation found that in order to stave off a catastrophic loss of revenue if the IRS launched its own online filing program, tax software makers lobbied to offer THEIR free service called Free File to qualified Americans. While 70% of Americans qualified – this year with a gross income of $79,000 or less – only about 2.2% of Americans actually used it, mostly because they don’t know the program exists. One finance research group estimates Americans spent almost $13.9 Billion dollars for online tax prep 2023. A 2022 survey commissioned by the IRS found that 72% of taxpayers were somewhat or very interested in a free IRS app.
We have a link to Pro Publica, the pilot IRS Direct File app and more at AmericanDemocracyMinute.org. I’m Brian Beihl.
Today’s Links
Articles & Resources:
Open Secrets – Tax prep companies that spent over $90 million lobbying against free tax-filing system face new scrutiny from lawmakers
Pro Publica – Inside TurboTax’s 20-Year Fight to Stop Americans From Filing Their Taxes for Free
NerdWallet – Data: Americans Waste Billions to File Tax Returns
Federal Trade Commission – FTC Issues Opinion Finding that TurboTax Maker Intuit Inc. Engaged in Deceptive Practices
Congressional Research Service – The Internal Revenue Service’s Free File Program (FFP):
Current Status and Policy Issues
CNBC – Roughly 70% of taxpayers are eligible for IRS Free File, but only 2% used it in 2022
Internal Revenue Service – IRS Direct File pilot for States of Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming
IBIS World – Tax Preparation Services in the US industry analysis
Groups Taking Action:
Coalition for Fair Filing, Public Citizen, Economic Security Project
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