Democratic bill would mandate new free IRS tax filing program

Sen. Elizabeth Warren is leading her fellow Democrats in renewing efforts for the IRS to create its own free tax filing services and move away from its current private partnership, whose services are used by only a tiny fraction of taxpayers.

Warren, D-Mass., introduced a bill that would require the IRS to create its own free online program for preparing and filing tax returns and expand taxpayer access to their own held tax data by the agency. California Democrats Brad Sherman and Katie Porter led the introduction of a House version of the measure.

The legislation would direct the IRS to create software that would allow any taxpayer to prepare and file their personal income tax return beginning with the 2023 tax year. simple – those who don’t take any of the above -line deductions, itemize their deductions, or earn income as a sole proprietor of a business, for example – to choose to have the Treasury prepare their tax return from of the 2023 tax year.

The IRS should create a program that allows taxpayers to securely download return information provided by third parties and data held by the IRS relating to their individual tax bills.

The bill would require a program by March 1, 2023, allowing taxpayers who do not have to file tax returns to claim refundable tax credits. The provision aims to extend a child tax credit enrollment tool to non-filers who can access other tax benefits like the working income tax credit, which is open to low-income workers .

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