{"id":8159,"date":"2023-10-17T20:44:55","date_gmt":"2023-10-17T20:44:55","guid":{"rendered":"https:\/\/topat10.com\/thousands-of-taxpayers-will-be-invited-to-test-a-new-online-tax-filing-system-aimed-at-bringing-the-irs-into-the-21st-century\/"},"modified":"2023-10-17T20:44:55","modified_gmt":"2023-10-17T20:44:55","slug":"thousands-of-taxpayers-will-be-invited-to-test-a-new-online-tax-filing-system-aimed-at-bringing-the-irs-into-the-21st-century","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=8159","title":{"rendered":"Thousands of taxpayers will be invited to test a new online tax filing system aimed at bringing the IRS into the 21st century"},"content":{"rendered":"\n
\n

The agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.<\/p>\n

The IRS faces intense blowback from private tax preparation companies that have made billions from charging people to use their software. The introduction of a government-run option could upend the industry and fundamentally change the way taxpayers interact with IRS.<\/p>\n

All eyes are on the agency to get it right \u2014 and avoid a roll-out reminiscent of the\u00a0disastrous healthcare.gov website<\/a>\u00a0rollout a decade ago, when many users encountered challenges accessing and using the website.<\/p>\n

\u201cThe 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,\u201d IRS Commissioner Daniel Werfel said on a call with reporters previewing the latest details of the program.<\/p>\n

\u201cWe want to make sure it is an easy to understand pilot\u201d Werfel said. He added that the data pulled from the pilot will be \u201cimperative\u201d in determining the usefulness of the program.<\/p>\n

The agency plans to work with nonprofits, congressional offices, states and others to identify taxpayers who are eligible for the pilot program, based on the types of income, tax credits and deductions that they claim.<\/p>\n

Werfel said the pilot is meant to be \u201cjust another choice taxpayers have\u201d to file their taxes. \u201cOur work to evaluate the feasibility of direct file is just one of many examples of how we\u2019re working to transform the IRS.\u201d<\/p>\n

Derrick Plummer, an Intuit<\/a> spokesman, said the program is \u201ca solution in search of a problem, and that half-baked solution now has the potential to become a financial nightmare for tens of millions of Americans while unnecessarily costing billions of dollars for something free of charge today.\u201d<\/p>\n

Several organizations offer\u00a0free online tax preparation assistance<\/a>\u00a0to taxpayers under certain income limits.<\/p>\n

The IRS was tasked with looking into how to create a \u201cdirect file\u201d system as part of the funding it received from the Inflation Reduction Act, which President Joe Biden signed into law last summer. It gave the IRS nine months and $15 million to report on how such a program would be implemented.<\/p>\n

The IRS published a feasibility report in May laying out taxpayer interest in direct file, how the system could work, its potential cost, operational challenges and more.<\/p>\n

One of the main criticisms of the program is that it the direct file pilot only covers individual federal tax returns and does not prepare state returns. However, IRS officials said they are working with Arizona, California, Massachusetts and New York for filing season 2024 to integrate state taxes into the pilot.<\/p>\n

Organizations like Code for America are working with the states to create their own state filing programs to be integrated in to the direct file tool.<\/p>\n

Gabriel Zucker, associate policy director for tax benefits at Code for America, said his non-profit is working with Arizona\u2019s Department of Revenue and New York\u2019s Department of Taxation and Finance to create a state filing tool.<\/p>\n

The states are \u201creally blazing the trail for this exciting project and finding a way for state filing to work within the context of this, \u201d Zucker said. \u201cThis is a team that\u2019s committed to doing government technology right.\u201d<\/p>\n

Taxpayers in nine other states that don\u2019t have an income tax \u2013 Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming \u2014 may also be eligible to participate in the pilot, according to the IRS.<\/p>\n

Werfel said more details on who they choose to invite to the program will be released in January.<\/p>\n

\u201cIn terms of that first set of taxpayers, we are still working the details \u2014 to find the right size and the best approach.\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

The agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season. The IRS faces intense blowback from private tax preparation companies that have made billions from charging people to use their software. The introduction of a government-run option could upend the industry and […]<\/p>\n","protected":false},"author":54,"featured_media":8160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[123],"tags":[],"class_list":["post-8159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nThousands of taxpayers will be invited to test a new online tax filing system aimed at bringing the IRS into the 21st century | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"The IRS faces intense blowback from private tax 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