[VERGE] 13 states join the IRS direct-file test after tax prep firms dropped the ball - eviltoast
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    1 year ago

    This is the best summary I could come up with:


    An Internal Revenue Service pilot might just eventually bring US citizens a free direct-file alternative to commercial options like TurboTax and H&R Block.

    Since 2001, a partnership between companies like TurboTax maker Intuit and the IRS called the Free File Alliance has given consumers a free alternative to paying for tax preparation.

    However, it turned out that when you try to get companies to offer an alternative to giving you money, they will do their best to hide that option.

    When the IRS updated the agreement to forbid companies from doing that — and give itself permission to create its own free file option — both H&R Block and Intuit left.

    Danny Werfel, who heads the IRS, says this will test the government’s capacity to do this, adding that the Internal Revenue Service will work closely with participating states to gather the information it needs to see if the program works.

    Only some people can participate, depending on their income, tax credits, and deductions.


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