Monday, May 28, 2007
Free File Alliance Blasts Senate's Proposed IRS Web Portal for Free Tax Return Preparation and eFiling
I previously have blogged (here and here) the Senate Finance Committee's criticism of the Free File Program, a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies (blogged here). Since Free File’s debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program. Free File allows taxpayers with an AGI of $52,000 or less (70% of all taxpayers) to e-file their federal tax returns for free.
The Free File Alliance has issued a press release with a copy of a letter sent to the Senate Finance Committee expressing concern over the proposed government-funded "web portal" for the preparation and eFiling of income tax returns:
The proposal would threaten the continued viability of the government-industry partnership and the free tax preparation services that the Alliance provides to the neediest Americans. ... The proposed web portal would make the federal government a direct, government-subsidized competitor with the private sector. All costs, technical infrastructure and customer service burdens currently borne by the Free File Alliance would shift to the federal government, thus creating an added tax burden for the American taxpayer.