Nearly two dozen state officials are calling for the Biden administration to terminate a new free tax-filing program by the IRS.
Indiana State Treasurer Daniel Elliott led a letter to Treasury Secretary Janet Yellen and others from 21 state Republican financial officers arguing against the pilot program. They argued the IRS Direct File program is “a solution in search of a problem” and specifically raised concerns about its effects on state tax returns.
The group argued the Direct File program “will create challenges for taxpayers and state treasurers and the costs of Direct File far outweigh any potential benefits it may confer to taxpayers.”
In the letter, the state financial officers contend that because the Direct File system only handles federal tax returns, residents might be unaware they also have to separately file state returns
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