The federal government has just fulfilled a promise that you will remember Biden made almost four years ago. The filing of federal taxes is an issue that raises controversy, as it turns a public service into a business (as many families consider it). How much do you spend every time you do this procedure? Everything could change now, and we are talking about good news on this occasion.
Goodbye for doing this while filing federal taxes: this change will affect you
A new proposition in filing federal taxes with no cost was announced by the Internal Revenue Services (IRS). It also aims at transitioning its Direct File program to a permanent state, providing the general public with a no-cost, online solution for preparing their federal income tax returns.
As such, this move will be extending a relief to over fifty million Americans by affording them an opportunity to file their taxes at a one-time convenient fee. The Direct File program was piloted in 12 states from March to April this year alone targeting to extend the program over the fiscal year.
The program generated roughly 140,000 accepted returns and brought money savings per participant of $5. 6 million for individuals on the expenses incurred on tax preparation services and assisting the preparers in helping individuals get $90 million in refunds.
No more paying for filing federal taxes: the pilot program that will now be extended
The success of the pilot has been enough for the IRS to open up the program to all 50 states and the program will now be enlarged to include however many states wished to gain access. One of the more straightforward programs is called the Direct File.
It functions based on a question-and-answer process with text-based questions that are easy to answer. It also provides a feature for tracking refund status and confirmation of the submitted returns in real-time. It is offered in English and Spanish, which could help reaching more people who can read or understand those languages.
The increase in the IRS’s efforts to make the tax filing process more accessible and affordable is positively noted. Due to the growing use of online facilities, particularly for filing tax returns, many users will likely flock to the facility as the IRS plans to make Direct File a permanent free product.
The benefits of the program based on convenience and compared with current commercial preparer fees will be appreciated mainly by the low-income and middle-class taxpayers who face constantly increasing costs of commercial preparer services.
Everything can now change: the announcement made by the IRS.
The announcement was made by the IRS when the tax season is ongoing, and affected many taxpayers who have already filed their taxes. Amid the deadline for tax returns, the Internal Revenue Service has made Direct File a permanent and now, free solution for more taxpayers, probably implying more utilization of this digital means.
To support these changes, the post marked live chat, that enables taxpayers to freely communicate with the IRS while they are doing their taxes, will also be helpful to some extent to those requiring help. The Direct File program is closely related to the fact that the IRS has been working to develop a new service for tax filing.
The program aims to offer a user-friendly online filing solution for tax payers where there is no hidden and costly filing charges with tricks of adding up the amount to be filed and upselling. This approach aligns with the administration of President Biden’s commitment to reducing the cost of living for most households.
What do you think about Biden’sBiden’s measure to make the filing of federal taxes completely free? It would be something like what happens in Europe and also in most of Canada, although not in all American states. The intention of the authorities is to allocate the first funds to low-income level families, so it remains to be seen how it will materialize for the rest of the people, also for you.
