The Biden administration’s continued push for a direct e-file system for taxes is misguided. Americans overwhelmingly prefer commercial tax preparation software over an IRS-managed system, and a lack of trust in the government is a key reason for this preference.
The IRS would need to include a feature allowing taxpayers to file state returns along with federal returns to make its e-file more attractive. The only scenario where a direct e-file system would be preferred is for the minority of Americans who file complex returns.
Furthermore, the IRS has not been transparent about independent findings on the feasibility, cost, and taxpayer opinions on the matter. The administration handpicked a think tank with ties to the liberal wing of the Democrat party that has already advocated for this bureaucratic expansion. Can we really trust the IRS to file Americans’ taxes for them in a fair and impartial way when it already stacks the deck towards a predetermined conclusion to gain more power?
In conclusion, the Biden administration needs to focus on building trust with taxpayers, rather than trying to gain more power through a direct e-file system.
Taxpayers must have choices that work best for them when preparing their taxes, and the IRS must be transparent about independent findings.