John,
The House Appropriations Committee has approved a FY2025 Financial Services and General Government (FSGG) proposal that would cut $2.2 billion in IRS annual funding―compromising customer service and the IRS’s ability to crack down on wealthy tax cheats. In addition to cuts, it also includes a policy rider that would block the IRS from implementing the incredibly successful Direct File program to all 50 states.1
Since 2003, the tax preparation industry has spent more than $93 million on federal lobbying efforts to prevent an IRS program like Direct File that allows taxpayers to file their taxes for free, online. Intuit―who owns TurboTax―spent a company record $3.8 million in 2023 lobbying federal lawmakers.2
The Direct File pilot program was a staggering success. Over 140,000 taxpayers across 12 states used Direct File, receiving more than $90 million in refunds and saving an estimated $5.6 million in tax preparation fees.3 Now the tax prep industry―along with their corporate-owned politicians―are doing everything they can to squash this program.
U.S. taxpayers should not have to pay $200 or more to do their civic duty and file their taxes. We’re teaming up with over a dozen allies from across the country to send tens of thousands of messages to governors, urging them to opt their state into the Direct File program.
Fight back against corporate attempts to kill Direct File and power our efforts to implement it nationwide. Rush a donation today.
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By launching Direct File, the U.S. joined 36 other industrialized countries including Germany, the United Kingdom, and Spain in creating a free tax return filing program.4 Of all the people who used the service earlier this year, 90% ranked their experience as “Excellent” or “Above Average,” 86% reported that their experience with Direct File increased their trust in the IRS, and 90% rated the customer support as being “Excellent” or “Above Average.”5
Direct File has strong support in Congress. Back in May, Senator Elizabeth Warren (D-MA) and over 130 lawmakers―including Senate Majority Leader Chuck Schumer (D-NY)―applauded the success of the IRS Direct File program in a letter to U.S. Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel:
“We congratulate you on the success of the Direct File pilot and stand ready to work with you on making the program permanent and expanding it. We believe that the IRS can offer free and easy tax filing to every American taxpayer who wants it―and that, with Direct File, it will.”6
Together, we’re fighting back against corporate lobbyists that continue to push policies that scam U.S. taxpayers.
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Thank you for all you do,
Deborah Weinstein Executive Director, Coalition on Human Needs
1 ATF Coalition Letter Opposing House FSGG IRS Cuts
2 TurboTax maker Intuit spent millions in record lobbying blitz amid threats to tax prep industry
3 Warren, Carper, Beyer, Porter, Sherman Lead Over 130 Lawmakers Touting Direct File’s Successes, Urges Biden Administration to Expand Program, Make Permanent
4 How Could We Improve the Federal Tax System?
5 IRS Direct File Pilot Program Filing Season 2024 After Action Report
6 Warren, Carper, Beyer, Porter, Sherman Lead Over 130 Lawmakers Touting Direct File’s Successes, Urges Biden Administration to Expand Program, Make Permanent
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