Over 140,800 Embrace IRS Direct File Program, Saving Millions in Tax Prep Costs
IRS Direct File Program Gains Popularity: Over 3.3 Million Check Eligibility for Free Tax Filing
The IRS, the Americans who collect taxes, did something new that Americans really liked. Instead of using companies like TurboTax or H&R Block over 140,800 Americans in 12 states filed their taxes directly with the IRS, according to the report of Quartz. They got back $90 million in refunds! Lots of Americans more than 3.3 million and checked if they could do it too way more than the IRS expected.
Almost everyone who tried it said it was great. The IRS boss said they wanted to make it easy for Americans to do their taxes online without paying and it seems like they succeeded. This is a big change because usually, Americans use companies to do their taxes for them.
But this change isn’t good news for companies like TurboTax and H&R Block. Even though the IRS system doesn’t have everything those companies do a lots of Americans are interested in doing their taxes for free with the government. This could save Americans about $160 every year. Also, there have been some problems with the companies like tricking Americans into paying when they should get it for free.
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IRS Direct File Program: Evaluating the Future of Tax Filing in America
However, some Americans worry about the government taking advantage of the new system. They say there are already ways to do your taxes for free with nonprofit groups. But there have been problems with the companies before like not giving good advice or being tricky with their advertising. So, even though some Americans are worried, others think the new IRS system is a good idea.
Now, the IRS is looking at how well the new system worked. They spent a lot of money, about $24.6 billion, to make it happen. They’re going to decide if they should keep doing it or stop. The IRS boss says they’ll let us know what they decide later this year. This is a big deal because it could change how Americans do their taxes in the future.