John,

I wanted to make sure you saw yesterday’s email from Deborah.

The tax preparation lobby is trying to do everything it can to hobble the IRS’s wildly successful Direct File program, which is allowing taxpayers to file their taxes online for free.

A recent report from the Economic Security Project revealed some shocking figures that further proves why Direct File needs to be expanded (and why the tax prep industry is scared):¹

• If fully expanded to all 50 states, in 5 years Direct File can save the average user $160 per year in filing fees―that’s $11 billion in tax prep fees and time annually saved by U.S. taxpayers as a whole.

• Expanding Direct File means exposing and closing the tax credit gap―low-income households who qualify for the Earned Income Tax Credit (EITC) and/or the Child Tax Credit (CTC), but don’t know that they do and don’t claim them. Low-income households are missing out on an estimated $5-12 billion per year in tax credits they are entitled to. If the pandemic-era tax credit expansions were in effect, the estimate would increase to $19-47 billion per year.

• Every $1 invested in Direct File returns $106 in benefits to U.S. taxpayers.

• Direct File could save the IRS $300 million by reducing the use of paper returns and solving simple filing errors.

All of those savings are huge and are why we need to push back against tax preparation lobbyists and fully expand Direct File to every state.

Right now, we’re rallying allies across the country, sending tens of thousands of messages to Governors urging them to opt their states into Direct File for 2025.

Donate $5 today to power our activism as we fight back against corporate lobbyists that are trying to kill Direct File before it’s expanded to every state and every U.S. taxpayer.

If you've saved your payment information with ActBlue Express, your secure donation will go through immediately:

Thank you for all you do,

Meredith Dodson
Senior Director of Public Policy, Coalition on Human Needs

¹ The Impact of Direct File—by the Numbers

-- DEBORAH'S EMAIL --

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.

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.

Donate $5 today to power our activism and advocacy as we fight for a free tax filing system that works for every single U.S. taxpayer.

If you've saved your payment information with ActBlue Express, your secure donation will go through immediately:

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