There are only handful of Americans who know and taking advantage of the free online tax filing. As a matter of fact, this can be a big help for those who have personal taxes and to those who live in other states. The Internal Revenue Service or IRS will be disallowed in creating a system of its own to offer free online tax filing under the bipartisan bill that was passed in the House.
Streamlining the Process for its Citizens
At the moment, IRS has made partnership with private entities in providing free tax filing services online. The service is designed to cater the lowest 70 percent of taxpayers by income but just around 3 percent of taxpayers are using it. Others however have spent more or less a billion dollars per year only to have their taxes prepared by experienced and seasoned tax preparation companies.
Free filing provision is actually a small part of a larger IRS reform bill that was authored by Representative Mike Kelly and at the same time, Representative John Lewis. It has been passed to the House by voice vote. In other words, it was quite popular among lawmakers to the point that they cumulatively agree that it is not worth it to perform a roll call vote.
The way the free filing works is, you can visit the website of the IRS and then, search for links to the free file programs. You can find brands similar to TaxSlayer or TurboTax which may then try as well to make a sale.
Everyone Must Be on the Same Boat
The national Taxpayer Advocate also has a voice of taxpayers within the Internal Revenue Service has warned last season that current filing system has the probability to mislead the taxpayers and ensnare them in for a fee product offers.
Now, the bill has been passed to the House 3 times though in the past few years, it did not pass the senate.
The Consumer Action, US Public Interest Research Group and National consumer law has said in a letter last season that, free file section would create an effect of entrenching commercial software as well as commercial preparation for good.
And this will be at the expense of the American Taxpayers.
Thus, Senator Chuck Grassley as well as Ron Wyden has introduced a Senate version for this bill. In a statement, Wyden said that during drafting of this bill, his staff has pushed back on prohibition on IRS competing among various private tax preparation services and that he’d continue pushing for IRS to give the Americans prefilled returns that have their wage details already. At the same time, he lauded the restriction for the debt collection of the bill.