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John,
When the IRS announced that it would launch in 2024 a pilot program of their new, free, online tax filing system, it appeared to be a major win for the American people and a blow to the for-profit tax-filing industry. That’s because, each year, millions of people spend an average of $250 to file their taxes, often using tax prep software from corporations like TurboTax or H&R Block.[1]
But now we’ve learned that “Direct File” will only be available for filing your federal income tax returns, not your state returns–unless your state opts-in. And states only have until September 4th to do so.
If states don’t opt-in, that would mean millions of Americans would still need to rely on paid tax filing options for state returns, making it less likely they’d use the free “Direct File” system, even for their federal returns. And that could make the pilot program appear to fail, even if it was doing a great job for taxpayers.
Click here to send a message directly to your governor urging them to opt District of Columbia into the IRS’s new “Direct File” free, online tax filing system.
According to a new congressional investigation, tax prep companies have been illegally selling taxpayers’ sensitive information to Google and Meta (the parent company of Facebook and Instagram) for years. The American people deserve a free, online publicly-sponsored tax filing system so we don’t need to rely on paid options from corporations that put their financial bottom line ahead of their customers’ rights and privacy.
Click here to send a message to your governor now urging them to opt your state into the IRS’s new “Direct File” system.
Together, we’re fighting for a tax system that works for everyday people, not just the wealthy and greedy corporations.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1] “1040 (AND 1040-SR) INSTRUCTIONS,” IRS Tax Year 2022
[2] “Tax prep companies shared private taxpayer data with Google and Meta for years, congressional probe finds,” CNN, Jul. 12, 2023
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