The IRS is preparing a pilot program for a broad free tax filing program, but tax prep firms are lobbying against it.
do: allow taxpayers to file taxes automatically for free, in a process that takes just minutes.
But tax prep firms have launched a sprawling campaign to weaken or kill this new program. The Free File Alliance and American Coalition for Taxpayer Rights, of which Intuit and H&R Block are members,after reports of the IRS’s new pilot came out. Disclosures show that the lobbyists were hired in relation to tax preparation products and tax administration.
The lawmakers asked the firms to reveal how much revenue they’d made off of middle and lower income taxpayers and to detail the extent of their lobbying efforts in the past and over the current pilot program. “The IRS’ creation of a free, government-run direct filing tool would benefit taxpayers and rein in the predatory and exploitative behavior of tax prep companies,” the lawmakers wrote. “Recent revelations about tax prep companies’ abusive tactics, including reckless data sharing and deceptive advertisements, illustrate why this tool is essential for taxpayers, and your organization and its members should not be allowed to undermine the IRS’ efforts to better serve taxpayers.
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