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.
