John,
When the IRS launched its first-ever free online tax filing system this year, the hope was that its success would spur an expansion to millions more taxpayers in 2025. Offered in just 12 states this year, “Direct File” saved 140,000 taxpayers $5.6 million―plus hours of time spent filing their taxes.[1]
That’s why for most people it was great news when the IRS announced that “Direct File” would become available all across America next year. But what was the response from congressional Republicans?
Last week, the House Appropriations Committee released its IRS funding proposal for FY2025 and it explicitly prohibits any money from being used to fund “Direct File”. House Republicans are attempting to shutter the successful program before its nationwide launch in order to protect the profits of corporate tax preparers like TurboTax and H&R Block.
House Republicans also want to cut $2 billion from IRS tax enforcement, allowing their wealthy and corporate donors to continue cheating on their taxes.
In response, we sent nearly 20,000 messages to members of Congress last week demanding they fully fund the IRS to crack down on wealthy tax cheats and invest in its new, free online tax-filing system. Now, this Thursday, the House Appropriations Committee will vote on the Republican proposal that attacks IRS funding and Direct File.
Donate today to keep the pressure on Congress to reject attacks on the IRS, including cuts to its budget. We’re fighting for a fully funded IRS to better-serve everyday taxpayers and crack down on wealthy and corporate tax cheats.
In 2022, when Democrats passed the Inflation Reduction Act, it included historic investments in the IRS. In the first year, after beefing up its enforcement staff, the agency collected $500 million in taxes from millionaire tax cheats,[2] notified Microsoft that it owes $29 billion in back taxes,[3] and announced the audits of 60 giant corporations that together make more than $500 billion in profits each year.[4]
In fact, it was estimated that the original $80 billion investment in IRS funding would result in $200 billion in additional tax revenue over the first 10 years.[5]
Fight back against attempts to undermine Direct File and cut IRS tax enforcement. Donate today to counter Wall Street lobbyists and power our campaign to fully fund the IRS.
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Thank you for being a critical part of our movement demanding a tax system and economy that works for working people.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1] IRS makes Direct File a permanent option to file federal tax returns; expanded access for more taxpayers planned for the 2025 filing season
[2] The IRS crackdown on high-end taxpayers is already raking in millions in back taxes — here’s how much
[3] IRS says Microsoft owes an additional $29 billion in back taxes
[4] IRS Investment Update: Business Account Launches, Noncompliant US Subsidiaries Targeted
[5] The Effects of Increased Funding for the IRS
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