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In Thirteen US States, The IRS Will Test A Free Tax Filing Platform

A free electronic tax filing system will be tested in 13 states early in 2019, the IRS announced on Tuesday. The agency anticipates that hundreds of thousands of taxpayers will take part in the limited deployment.

Countries That Can Take Part In Trial

The tax office stated earlier this year that in an effort to save Americans money, it was creating a free tax filing tool. The annual cost of tax preparation services, accountants, and other assistance in filing returns is estimated to be $11 billion for Americans.

According to the IRS, citizens of nine additional states without income taxes might also be eligible to take part in the trial. The states in question are Nevada, South Dakota, Alaska, Florida, New Hampshire, Tennessee, Texas, Washington, and Wyoming.

The IRS programme is a result of the Inflation Reduction Act of 2018, which gave the agency cash totaling $80 billion and assigned it the duty of determining whether offering a free tax-filing system would be feasible.

In a call with reporters regarding the project’s status, IRS Commissioner Daniel Werfel stated, “The plan is to roll it out in increments that get larger and larger, consistent with how products like this are rolled out in the private sector.”

“We want to make sure it is an easy to understand pilot,” he stated. TurboTax is a tax preparation software programme offered by Intuit. In an email message, the company described the programme as “a solution in search of a problem.”

IRS To Collectorate With Nonprofit Organizations

“The Free File programme, which is currently provided by a coalition of tax-prep companies, will exclude the vast majority of taxpayers who can file their taxes absolutely free of charge today—free for the taxpayers and free for the government,” the company continued.

Free Tax

Source- Forbes

Seventy percent of taxpayers have access to Free File, but only four percent of them actually use it each year, according to a government assessment.

In order to determine which taxpayers qualify for the pilot programme based on the kinds of income, tax credits, and deductions they claim, the IRS intends to collaborate with nonprofit organisations, legislative offices, states, and other entities.

The trial, according to Werfel, is “just another choice taxpayers have” when it comes to filing their taxes. “Our work to evaluate the feasibility of direct file is just one of many examples of how we’re working to transform the IRS.”

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