IRS to explore free electronic tax filing system

The Internal Revenue Service will be taking a step toward making electronic tax filing more straightforward and accessible by studying a free option for taxpayers, reports The Washington Post.

The government tax agency will use $15 million from the $80 billion allotted in the Inflation Reduction Act to explore a free tax filing system. This platform could provide American taxpayers with another option to file taxes beyond relying on expensive private tax preparation companies. While the IRS does provide free e-filing options, the service is barely used due to its restrictions on qualifying returns.

Tax preparation services have been dominated by corporations for years, forcing Americans to spend money to file obligatory taxes yearly. Democrats sought to address that issue with the passing of this bill that requires the IRS to study an in-house free option for e-filing, the Post reports. Current and former IRS officials point to a lack of funding to explain why the government agency hasn't put a real effort into developing its e-filing system, writes the Post. This means taxpayers have relied on companies such as Intuit's TurboTax and H&R Block, often incurring multiple fees.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Experts believe creating a government system will give Americans reliable free options while increasing the efficiency of the IRS.