Monday July 25, 2022 – Nothing Is More Expensive Than a Free Government Service. There is plenty of evidence to support that contention.
Senator Elizabeth Warren, along with 22 additional Democratic lawmakers, has proposed providing FREE tax preparation – provided by the Internal Revenue Service to US taxpayers. The legislation would direct the IRS to create software that would allow any taxpayer to prepare and file their individual income tax return beginning in tax year 2023.
Good idea? Well, the IRS already has a Free File System.
That system is a public/private partnership and is available to about 70% of taxpayers. Although, only 3% of taxpayers used the service during the 2020 tax season, according to a U.S. Government Accountability Office report.
The IRS only answers 1 out of 9 phone calls and has a backlog 21.3 million unprocessed paper returns as of May 31, 2022. Adding additional duties to the already overburdened IRS is not a good idea.
Attorney Steven A. Leahy reviews Senator Warren’s proposal on Today’s Tax Talk.