Demand Progress

Stand Up to TurboTax. Make tax filing free for all!

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    Stand Up to TurboTax. Make tax filing free for all!

    Petition to President Biden and the IRS:

    We support the new Direct File program that would allow taxpayers to file for free. We urge you to continue pursuing the program until it’s available to all Americans.

    A shocking new report found that Intuit (TurboTax) receives more money each year in tax subsidies than it would cost for the IRS to run its own direct, free tax filing service.1

    This is a massive blow against TurboTax’s argument that the IRS’ proposed free taxing filing service would be too expensive.

    Despite TurboTax’s opposition, the IRS plans to begin rolling out its free tax filing program next year. But the tax filing corporations are spending millions on lobbying right now to gut or destroy the program.2

    Last year alone, Intuit received some $254 million in tax breaks, including a special research tax credit of $94 million.2

    The IRS says that it will cost between $64 million and $249 million annually to run its free tax filing program. It cost taxpayers more last year to fund Intuit’s research activities than it would to launch the free system at the low range of the IRS’ estimates.2

    A free, direct IRS system would also be far cheaper for American taxpayers, who pay a combined $11 billion every year on tax preparation services.3

    The tax industry’s lobbying is the reason that we don’t already have a direct filing system. Over the past 20 years, the industry has spent some $90 million dollars on lobbying to stop the IRS from creating a free tax system.2

    It’s time to stand up to Intuit and create a free tax prep system now!

    Sources:

    1. Institute on Taxation and Economic Policy, “Intuit Receives Millions in Federal Subsidies While Arguing IRS Direct File Would Be Too Costly,” October 24, 2023.
    2. The Lever, “The TurboTax Scam,” November 8, 2023.
    3. CBS, “IRS to test free tax-filing platform in 13 U.S. states. Here's where,” October 18, 2023.