IRS Introduces Direct File Program – Allowing Taxpayers to Bypass Tax-Prep Companies
Tax-Prep Industry Faces Uncertainty
According to Quartz, the IRS known for collecting taxes tried something new called Direct File. Direct File is a way for Americans to file taxes directly with the IRS skipping tax-prep companies like TurboTax. This made a big change giving taxpayers a free option to file their taxes without income limits. Many Americans liked Direct File and over 140,800 taxpayers tried it this past tax season.
Big tax-prep companies like TurboTax and H&R Block are worried about losing customers to Direct File. They’re concerned because many Americans might choose the free IRS Direct File option instead of paying for their services. Also, they wonder if the IRS can handle running this Direct File program well and stop any problems that might come up. Americans are also thinking about how this could change tax filing in the future, especially with more interest in free government options.
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140,800 Taxpayers Embrace IRS’s Direct File: Big Tax Prep Firms Fear Losing Ground and Question Program Efficiency! (PHOTO: Quartz)
Concerns Arise Over Future of Tax-Prep Industry Amid IRS’s Direct File Program
Furthermore, some worry about what this means for tax-prep companies and if the IRS can handle running this Direct File program well. Tax-prep companies are afraid they might lose customers to the free IRS option and they’re not sure if they can keep making money. Americans wonder if the IRS can fix any problems that might come up with Direct File. With more Americans wanting free ways to file taxes and the government keeping an eye on tax-prep companies things might change a lot in how taxes get done.
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