Congressional Democrats are accusing big tax preparation firms including Intuit and H&R Block of undermining the federal government’s upcoming electronic free file tax return system.
for the 2024 filing season to allow taxpayers to file directly to the agency for free. If the effort is successful it could be implemented nationwide in the future, potentially saving taxpayers the added cost of going through a tax prep company.
An April analysis by the AP found that Intuit, H&R Block and other private companies and advocacy groups for large tax preparation businesses, as well as proponents of electronic free file, have reported spending $39.3 million since 2006 to lobby on free file and other matters. Federal law doesn’t require domestic lobbyists to itemize expenses by issue, so the sums are not limited to free file.
Representatives of the Free File Alliance and the American Coalition for Taxpayer Rights did not immediately respond to AP requests for comment.as part of the funding it received from the Inflation Reduction Act, Democrats’ flagship climate and health care measure, which President Joe Biden signed last summer. It gave the IRS nine months and $15 million to report on how such a program would be implemented.
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