The IRS venturing into tax preparation software is a concerning development. Funded by the Inflation Reduction Act, a report commissioned from a think tank endorsed the idea of the IRS creating its own tax software. However, this "study" seems more like justification for a pre-planned decision, given the IRS had already begun developing the software before Congress could even review the report. This raises serious questions about government overspending and bureaucratic overreach.

The proposed IRS-run program is neither "free" nor "simple." Projected costs for a new call center and software development reach hundreds of millions annually. This contradicts the narrative of a cost-effective solution, especially given the IRS's existing customer service challenges. Furthermore, the private sector already offers free tax preparation services, completing millions of free returns annually. The focus should be on increasing awareness of these existing programs, not creating a redundant and costly government system.

The IRS proposal only addresses federal taxes, leaving state returns to the taxpayer. This omission creates further complexity and potential for errors. Moreover, if the IRS software makes a mistake, the taxpayer is still held responsible, potentially leading to disputes with the very agency that made the error. This inherent conflict of interest, coupled with the IRS's history of data breaches and security vulnerabilities, raises serious concerns about the safety and reliability of taxpayer information.
Instead of diverting resources to this questionable project, the IRS should focus on improving its existing services and addressing its cybersecurity weaknesses. This venture appears to be a misguided initiative that will ultimately burden taxpayers and further complicate the tax filing process.
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