Today, Explained Making taxes less taxing
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Apr 1, 2024 
Dylan Matthews, a Senior Correspondent at Vox with a focus on tax policy, dives into the complexities of the new IRS Direct File program. He discusses how political beliefs shape public perceptions of the IRS and critiques the mixed reactions to this initiative. The conversation highlights the program's design, challenges it faces for adoption, and historical attempts at similar software. Matthews also sheds light on the Inflation Reduction Act's impact on enforcement and the controversy around simplifying the tax-filing experience.
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IRS Direct File Launch
- The IRS has launched a new, free tax filing software called IRS Direct File.
- It's currently available in 12 states and aims to simplify tax filing for those with simple tax situations.
Direct File Design Philosophy
- IRS Direct File is designed with a minimalist approach to avoid the failures of Healthcare.gov.
- It focuses on a smaller group of taxpayers and simpler tax situations to ensure functionality.
Lobbying Against Free Filing
- Private tax software companies like TurboTax and H&R Block actively lobbied against a free government-provided tax filing option in the early 2000s.
- This lobbying led the IRS to back down from its initial plans and support a free filing program for low-income individuals offered by those private companies.