sorenspicknall.bsky.social profile picture

Soren Spicknall @sorenspicknall.bsky.social

Treasury is required to produce a report to Congress related to Direct File, the free tax filing option that the current administration intends to kill. They've created a survey with a bunch of leading questions. The survey deserves some responses supportive of the program to counteract its framing:

IR-2025-85, Aug. 21, 2025 — The IRS invites the public to participate in an anonymous feedback survey on tax preparation and filing options, which will run through Sept. 5, 2025.

IRS asks for public input on free tax filing options to inform congressional report | Internal Revenue Service

IR-2025-85, Aug. 21, 2025 — The IRS invites the public to participate in an anonymous feedback survey on tax preparation and filing options, which will run through Sept. 5, 2025.
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tymcbray.bsky.social profile picture

Ty McBrayer @tymcbray.bsky.social

So it costs the IRS $10-20 to process a return. I’d call that a bargain, and there are likely good economic trade offs for the IRS to continue a direct file program. I remember having to call the IRS with questions. That was loony tunes.

Replies

  1. jenniferhendricks.bsky.social profile picture

    Jennifer Hendricks @jenniferhendricks.bsky.social

    It doesn't even cost that much. They claim on the survey that "setting up and running the program is expected to have an initial cost to the federal government of at least $10-$20 per return processed." Sounds like they're averaging the whole initial setup cost over just one year of returns.

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  2. ethelmay.bsky.social profile picture

    ethelmay @ethelmay.bsky.social

    Also, it's not as if it's free for them to process a return now. There are always costs. Lots of countries pre-fill returns or have return-free filing, with no direct cost to the taxpayer. We don't do it here because Intuit and H&R Block threw fifty fits.

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