The last thing the IRS should be doing right now

The IRS should stay out of the tax preparation business. Before explaining why, let me tell you how we got here.

In May, the IRS released a report on the feasibility of the IRS preparing and filing tax returns. The Democrat-passed, and misnamed, Inflation Reduction Act gave the IRS $15 million to have an “independent third-party” tell Congress whether the IRS should create its own tax preparation software, called a “direct file” program.

The IRS hired a Washington, D.C., think tank called New America, labeled a “left leaning” group by the Washington Post, to help write the 106-page report. That adds up to $141,000 a page. Considering the consultant, the report’s conclusion was no surprise: spend billions, so the IRS can offer tax preparation software that companies with decades of experience already provide for free.


The American Coalition for Taxpayer Rights (ACTR) was formed in 2011 by the nation’s leading retail tax preparation and tax software companies and financial institutions, which collectively prepare and file more than 120 million of the 155 million federal tax returns annually. ACTR advocates for taxpayer rights and strengthens America’s voluntary tax compliance system.

Tax Preparers

Financial Institutions