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IRS free tax program The Trump administration is in danger as a cut in the agency’s face.
After a limited Pilot projection In 2024, the program is known as Direct fileExtend more than 30 million taxpayers 2025 in 25 states for the filing season.
Funded under Reduction in inflation act In 2022, the program has been conducted heavily by Republican, who has criticized the cost and participation rate. In the last one year, Republican MPs of both the chambers have introduced the law to prevent the free filing program of IRS.
Now, some reports say that direct file May be at riskAccording to an official of the White House administration, in the meantime, no decision has been taken yet about the future of the program.
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during his Senate confirmation hearing In January, Treasury Secretary Scott Besent committed to keep the direct file active during the 2025 filing season without commenting in future years.
“I will consult and study the program and understand it better and make sure that it works to serve the three goals of IRS, customer service, and privacy,” Besant told the Senate Finance Committee at the hearing.
However, the future of free tax filing program is not clear.
By 17 April, the direct file website said the program will be held Open by 15 OctoberWhich is the time limit for taxpayers who filed for one Federal tax expansion,
Many taxpayers can also file free through any other program IRS free fileWhich is a public-private partnership between IRS and Free File Alliance, a non-profit alliance of tax software companies.
IRS in May 2024 Extended free file program Through 2029.
Mixed review of IRS direct file
Direct file supporters on Wednesday destroyed the possible decision to terminate the program.
The Senate Finance Committee Ranking member Ron Widen, D-Ore, “no one should pay a huge fee to record his taxes. Said in a statement On Wednesday.
Wayden “described the program as a major success, saving millions of people in fees, saving them time and cutting an unnecessary middleman.”
In January, under the leadership of over 130 Democrats, sensors Elizabeth Warren, D-Mas, and Chris Cons, D-Dale, led by D-Dale. Voice support for direct file,
However, opponents have criticized the participation rate and cost of the program.
During 2024 pilots, some 423,450 taxpayers created or signed a direct file account. One third of those taxpayers, About 141,000 filerAccording to a March report by Treasury Inspector General for Tax Administration, the return was presented through the direct file.
Those figures represent a mid-season 2024 launch in 12 states for simple returns only. It is not clear how many taxpayers used direct file through the deadline of April 15.
The cost was for direct file through the pilot $ 24.6 millionIRS reported in May 2024. According to the agency, the direct file operating cost was $ 2.4 million.
