Claiming high user satisfaction, IRS will decide on renewing free tax site
International comparisons & prefilled/automatic taxes
- Many commenters from Canada, Norway, Sweden, Australia, UK describe systems where:
- Tax authorities prefill most data from employers/banks and provide online portals.
- Most people just review, add a few deductions, and click submit (often under 10–15 minutes).
- In some countries many workers never file at all; the government just settles automatically.
- Several contrast this with the US, where taxpayers must re-enter information the IRS already receives.
US system, IRS Direct File, and corporate lobbying
- Widespread view that US tax filing is unnecessarily complex to benefit private tax-prep firms.
- Intuit/TurboTax and others are repeatedly cited as lobbying to block or weaken free government filing.
- Some praise the new IRS Direct File pilot and Free Fillable Forms, reporting accurate returns, error checking, and relief at avoiding paid software.
- Others like commercial tools (e.g., TurboTax) for perceived reliability and UX, though they acknowledge rising prices.
Complexity, literacy, and fairness
- Multiple comments highlight a mismatch between low general literacy/financial literacy and the expectation to self-file accurately.
- The tax code is described as huge, ever-changing, and full of special cases, cycles between states, and obscure instructions.
- Many argue the code is used for social engineering and targeted favors, especially benefiting wealthy individuals and corporations.
- Calls for radical simplification: mostly wage-based auto-calculated tax, minimal deductions/credits, and prefilled returns with a “confirm or correct” step.
Privacy and government data
- Some worry that prefilled returns imply excessive government knowledge of individuals’ finances and eroded privacy.
- Others counter that:
- Government already needs income data to enforce any income tax.
- For the majority (W‑2 wages, standard deduction), the IRS already has almost everything needed.
- Debates compare US norms with more transparent societies (e.g., public income data in Sweden), with sharp disagreement over whether that’s acceptable.
Politics, enforcement, and incentives
- Several note IRS underfunding and very high estimated ROI for enforcement spending, especially on wealthy taxpayers and large entities.
- Anti-tax politicians are described as opposing simplification because easier filing might reduce tax resentment.
- Commenters frame the status quo as:
- A de facto jobs program for preparers and CPAs.
- A form of corporate capture where government-created complexity sustains private profit.
Everyday burden & edge cases
- Numerous anecdotes describe:
- Hours or days lost to understanding forms.
- IRS rejections and correction letters that prove the agency already knows “the right” numbers.
- Extreme complexity around household employees (nannies/babysitters), small business income, multi-state filing, and investments.
- Several argue that even if some edge cases must still file, the “easy majority” should get automatic or nearly-automatic returns.