The Way You File Your Taxes on the Verge of Changing Thanks to the IRS

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After the signing of the “Inflation Reduction Act”, which grants $80 billion to the IRS, the Internal Revenue Service (IRS), is poised to change the way Americans file taxes. The legislation provides $15 million for reporting on the “free, government-run tax e-filling” system.

The agency has approximately one year to submit its electronic filing report. The agency needs to determine how much it would cost and what taxpayers feel about it. It is not clear how they will determine if taxpayers support or oppose their system unless they post ballot measures that allow for states to choose. It is not clear how the new free electronic filing system will be compatible with the agreement between IRS and private taxpayers. There are many questions that need to be answered.

According to tax experts, this change could be in two forms. One that is more limited and one that has a greater reach.

Alex Muresianu, Tax Analyst at the Tax Foundation said:

“The IRS already has this information with the withholding. It’s a bit annoying to have to go through it and input it yourself. Joint filing is a feature of the U.S. Your employer may know your income, but they won’t know your spouse’s. Employer withholding doesn’t reflect various credits or tax programs.”

There are many questions to be answered, as we have already mentioned.

Robert Weinberg, who is associated with the Urban-Brookings Tax Policy Center stated:

“If you, as a taxpayer, know things that the IRS doesn’t know about your benefit, then you may not want to share it with them. But, there are arguments that this would be worthwhile since the entire system would be simpler and people would be happier. Maybe that’s a tradeoff we are willing to make.”

Frank Clemente is a left-leaning advocacy organization director for Americans for Tax Fairness.

“It is crucial to make filing taxes as simple as possible… We have to get rid of this antagonistic feeling. Simpler tax systems will lower costs, increase compliance, and help people feel better about the IRS.”

Left-leaning parties argue that the IRS plan will “reduce costs” and make everyone pay what they are owed. This will result in people feeling “better” about the IRS.

Last week, Texas cattle ranchers warned Americans that the “Inflation Reduction Act” would increase IRS funding by $80 billion.

The proposal of the IRS will be accepted by the American people.

Senator Ted Cruz (R.TX) was not shy in his tweeting on Sunday: