Gallego Calls On IRS to Cut Costs for Arizonans, Expand and Improve Direct File Program
Letter builds on Rep. Gallego’s work to eliminate burdensome hidden fees and save Arizonans money
PHOENIX – Today, Rep. Ruben Gallego (AZ-03) called on Treasury Secretary Janet Yellen and Internal Revenue Service (IRS) Commissioner Daniel Werfel to expand and improve the Direct File program that was launched this past tax season. Arizona was one of 12 states to participate in the pilot program.
“For those not using Direct File, the tax filing process can often be both time-consuming and expensive. Direct File is the first program of its kind to allow taxpayers to file their taxes directly with the federal government, free of charge,” Rep. Gallego wrote. “Over 140,000 users claimed more than $90 million in refunds and saved millions in fees. The success of Direct File suggests a strong incentive to support a longer-term, expanded direct filing option for all Americans.”
Arizona was one of four states that participated in the Direct File pilot program that also has state income taxes. Because Arizona requires the federal return to be accepted before being transmitted to the state revenue agency, some taxpayers faced challenges filing a state return if the federal Direct File results took too long to process or were rejected.
To that end, Rep. Gallego requested answers to the following questions:
-
What, if anything, is the IRS doing to simplify direct filing options in areas with state income tax?
-
What resources does the IRS need to expand Direct File to the remainder of the United States and to additional taxpayers in Arizona?
-
How can Congress assist the IRS in preparing for potentially greater demand and usage of Direct File without delays?
-
What issues have consumers flagged for the agency that you are prioritizing before the next tax filing season?
-
What have been the greatest unforeseen challenges with the initial pilot program?