Americans spend an average of 13 hours and $240 per year while filing taxes. The recently introduced bill, 'Tax Filing Simplification Act of 2022' that was presented by Senator Warren and cosponsored by 22 lawmakers would direct the IRS,
"To establish a free online tax preparation and filing service and programs that allow taxpayers to access third-party provided tax return information and information held by the Internal Revenue Service."
Although some Americans do currently have access to the Free File program, since it has been outsourced by the IRS to the tax prep industry, it has only served 3% of taxpayers when 70% are eligible. Using marketing tactics and add-on options, the tax prep industry has taken advantage of the taxpayers for years.
The IRS already has the information it needs to calculate tax liabilities and refunds, but corporate special interests like TurboTax have lobbied Congress for years to allow them to keep abusing taxpayers to line their pockets. Our Tax Filing Simplification Act puts people first and makes government work better for taxpayers.” said Congresswoman Katie Porter, a member of the House Oversight and Reform Committee.
“American taxpayers spend too much time and money preparing their tax returns. It doesn’t have to be this way,” said Congressman Brad Sherman, a CPA and Co-Chair of the Bipartisan CPA Caucus.
“The problems caused by an overly complicated tax filing system—the time, expense, and worry that families are faced with each April—should not be a given in this country,” said Susan Harley, Managing Director of Public Citizen’s Congress Watch division.
According to a press release published on July 13, 2022, by Elizabeth Warren,
This legislation would simplify the tax filing process for millions of Americans, saving them hours and hundreds of dollars. Along with lowering costs and eliminating red tape for all taxpayers, simplified filing tools would ensure that more eligible people – including millions of low-income Americans – receive important tax refunds, like the Child Tax Credit and Earned Income Tax Credit. According to recent polling, 77% of Americans support this legislation.