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Direct File won't happen in 2026, IRS tells states

nextgov.com

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Re: Direct File won't happen in 2026, IRS tells states

#211

Post by dpark »

Amezarak wrote: post #210
dpark wrote: post #184

Earlier quoted context omitted.

I suspect GP is simply misinformed about the reality of the situation. They also explicitly state “you can already do it for free if you want to, it just requires a third-party”. They are missing the context that only a fraction of filers are eligible to use free filing and that TurboTax paid something like 140 million to settle claims that they are misleading filers. That suit is why they now admit only 37% of peopl…

Free Fillable Forms is free for everyone. It is technically a third party. It’s very simple if you have the average tax filing situation. There are also other services that provide free efiling regardless of income, it’s not just TurboTax. At the end of the day, you can always do the paperwork if you really don’t want anyone seeing your taxes and mail it. Could it be better? Oh sure, but it’s difficult for me to feel…

> Oh sure, but it’s difficult for me to feel very passionate about it.

Just passionate enough to say that everyone unhappy with Intuit lobbying against free tax filing and simplified tax codes doesn’t understand?

> As mentioned in sibling posts, the IRS does NOT have the information it needs to get even close on your taxes. They know your reported income. They do not know your marital status, how you’re going to file, if or how many kids you have and will be filing for, and many other things. These all have MAJOR tax impacts.

This is misleading. The IRS does have this because for most people it does not change year to year. It would also be trivial for them to provide a way to input this data if/when it does change.

Re: Direct File won't happen in 2026, IRS tells states

#213

Post by terminalshort »

nielsbot wrote: post #194
terminalshort wrote: post #168

Earlier quoted context omitted.

You don't have to do that. There is no such requirement. You can fill out the forms for free.

But that's a bad solution. (Otherwise why do TurboTax et al even exist in the first place?) IRS should just have a public free filing solution for everyone. If you have complicated taxes or want to do your own filing, you can still do that.

They do. https://www.irs.gov/e-file-providers/free-file-fillable-form.... And no it isn't a bad solution. I use it every year.

Re: Direct File won't happen in 2026, IRS tells states

#214

Post by lcnPylGDnU4H9OF »

com2kid wrote: post #193
sobkas wrote: post #124

Earlier quoted context omitted.

> I am surprised no one has started a go fund me to make a fund just to bribe politicians to fix tax filing. > > It would be cost effective VS paying for tax prep! It will not work, part of compensation is being hired as lobbyist after you "retire" from public office. So either go fund me will do the same or it will fail.

> It will not work, part of compensation is being hired as lobbyist after you "retire" from public office. So either go fund me will do the same or it will fail. This is a bit reductive. Not everyone member of Congress goes to work for TurboTax after they retire! However I imagine Inuit is a reliable source of campaign contributions every year. The simple solution is to get enough funding that the campaign can promis…

There's no guarantee this doesn't simply make the bribe more expensive for Intuit.

Re: Direct File won't happen in 2026, IRS tells states

#215

Post by bluebarbet »

ainiriand wrote: post #120
foxglacier wrote: post #60

Earlier quoted context omitted.

Doesn't America have uniquely complicated tax that requires you to keep all your receipts to claim all sorts of confusing deductions? How can the IRS know what you spent your income on if you don't tell them? I've had the misfortune of having to fill in a W8-BEN-E form [1] and the first time, I just gave up and refused to work with the client because it was too complicated. The 2nd time, I got an LLM to tell me how t…

When you say America you certainly mean USA? Or is America a country now?

Technically, America is neither a country nor a continent. But the USA is the only country on either of the continents of the Americas to have the word "America" in its official name. Give the Americans a break.

Re: Direct File won't happen in 2026, IRS tells states

#216

Post by catapart »

insane_dreamer wrote: post #204
catapart wrote: post #146

Earlier quoted context omitted.

If anyone's interested, the CashApp tax prep section (kind of its own app, but its contained within the CashApp app) is a feature they have purchased from CreditKarma when CreditKarma got bought out by Intuit (turbotax pricks). So I had filed taxes with CreditKarma one year, and then the next year the CreditKarma tax service had no information about my previous filing. So I tried out the CashApp app, since I was goin…

> it's free for basic taxes, Not just the basics. I found that it could do everything I needed including Schedules C, D and E. IIRC, its limitations are if you're earning in multiple states, or are earning foreign income.

Oh, cool! I never used it past simple single-person filing, so it's good to know that it's still solid for more complicated situations.

Re: Direct File won't happen in 2026, IRS tells states

#217

Post by com2kid »

lcnPylGDnU4H9OF wrote: post #214
com2kid wrote: post #193

Earlier quoted context omitted.

> It will not work, part of compensation is being hired as lobbyist after you "retire" from public office. So either go fund me will do the same or it will fail. This is a bit reductive. Not everyone member of Congress goes to work for TurboTax after they retire! However I imagine Inuit is a reliable source of campaign contributions every year. The simple solution is to get enough funding that the campaign can promis…

There's no guarantee this doesn't simply make the bribe more expensive for Intuit.

There are limits to corporate donations and lobbying, which is why the price of lobbying seems so low (see the linked blog post in the comments here!)

SuperPACs get around that, but there is a chance a large company like Inuit isn't agile enough to defend against a well organized political attack.

Ultimately career politicians care about being elected. Even corrupt ones need to stay in office and they'll happily sacrifice one small donor to keep the gravy train coming with all their other connections.

If an independently funded lobbying group walks into DC and tells a senator they just raised 30M dollars and 80k residents in their state donated as part of that, I bet people will start to listen.

Re: Direct File won't happen in 2026, IRS tells states

#218

Post by BrandoElFollito »

Amezarak wrote: post #129
wildzzz wrote: post #121

Earlier quoted context omitted.

The IRS already has most of my tax information and knows the tax code. Why must I deal with a third party (and potentially have to pay them) to electronically file my own taxes?

You don't have to pay. https://www.irs.gov/e-file-providers/free-file-fillable-form... As for "having most of your tax information", they don't. They know your reported income. You see that on your W2s/1099s/etc. What they don't know is whether or not you had a kid this year, or whether you lost a kid this year, whether you got married or divorced, if your spouse is claiming the kids this year or not, the number or a…

In France the web site asks you if your household details changed.

No? 2 more clicks and you are done.

Yes? 2 + nr of changes clicks and you are done. Took me an extra 5 seconds when my son left.

You can make your taxes as complcated as you want but for 95% of the population foling taxes takes a few minutes.

Re: Direct File won't happen in 2026, IRS tells states

#219

Post by Amezarak »

dpark wrote: post #211
Amezarak wrote: post #210

Earlier quoted context omitted.

Free Fillable Forms is free for everyone. It is technically a third party. It’s very simple if you have the average tax filing situation. There are also other services that provide free efiling regardless of income, it’s not just TurboTax. At the end of the day, you can always do the paperwork if you really don’t want anyone seeing your taxes and mail it. Could it be better? Oh sure, but it’s difficult for me to feel…

> Oh sure, but it’s difficult for me to feel very passionate about it. Just passionate enough to say that everyone unhappy with Intuit lobbying against free tax filing and simplified tax codes doesn’t understand? > As mentioned in sibling posts, the IRS does NOT have the information it needs to get even close on your taxes. They know your reported income. They do not know your marital status, how you’re going to file…

People want simplified tax codes only in principle. Everyone has a deduction or credit they will fight to defend.

Re: Direct File won't happen in 2026, IRS tells states

#220

Post by Amezarak »

BrandoElFollito wrote: post #218
Amezarak wrote: post #129

Earlier quoted context omitted.

You don't have to pay. https://www.irs.gov/e-file-providers/free-file-fillable-form... As for "having most of your tax information", they don't. They know your reported income. You see that on your W2s/1099s/etc. What they don't know is whether or not you had a kid this year, or whether you lost a kid this year, whether you got married or divorced, if your spouse is claiming the kids this year or not, the number or a…

In France the web site asks you if your household details changed. No? 2 more clicks and you are done. Yes? 2 + nr of changes clicks and you are done. Took me an extra 5 seconds when my son left. You can make your taxes as complcated as you want but for 95% of the population foling taxes takes a few minutes.

Filing a 1040 in the US is also very easy and takes a few minutes and can be done for free.

Another factor most people are ignoring is that state taxes are filed at the same time and each state has its own separate system. These third parties let you fill in and file both at the same time. It would be nice if the US gov did this too but it requires a total restructuring of the American system, and Intuit’s lobbying has nothing to do with why it hasn’t happened or for that matter why the tax codes looks like it does.

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