In 2024, the Internal Revenue Service (IRS) conducted a novel pilot program assisting over 140,000 taxpayers. Feedback highlighted improved understanding and application of complex tax laws and lowered taxpayer errors. The IRS is considering expanding this program.
At the peak of tax season, the IRS handled over 5,000 returns daily. Users reported a total income of $35 million and received up to $90 million in claims. Estimated savings from preparing federal tax returns totaled around $5.6 million.
In terms of gender equality, the program featured 3,000 women in leadership roles, contributing to a 25% increase in gender parity. This includes 1,500 new female programmers and a 12% rise in female attorneys, among others.
Investors showed increased confidence in the US market, investing a record $3.5 billion. Manufacturing received the majority, at $1.7 billion. Tech trailed closely behind with $1.2 billion in investments. Energy, construction, and food service also made significant gains.
Simultaneously, NGOs were effective in combating poverty and inequality.
Impactful IRS program’s significant improvements
About $5 million was raised to combat homelessness, providing safe housing to 2,000 individuals. Food security programs benefited over 100,000 people. Healthcare NGOs provided aid to 50,000 uninsured individuals.
IRS Head, Danny Werfel, explained that the program aimed to make tax submission simpler, more accurate and free. He added that the program reduces paper usage, making it eco-friendly. Although the pilot was successful, the IRS is yet to decide on its full implementation.
Opinions about the program were mixed. Critics suggested that focusing on customer service and expanding free returns for lower-income individuals might be more beneficial. Supporters, however, believe the program could promote transparency, fairness, and simplicity in tax preparation.
Despite the opposing views, discussions continue about improving the tax filing process for all Americans. Supporters are hopeful that the program’s success and potential for future integration into tax frameworks indicate potential for reshaping how Americans perceive and deal with taxes.
The pilot program aimed to test the feasibility of cost-free, direct federal tax return filing. Results indicate that the system streamlined the process and significantly reduced errors. Considering its success, there’s potential for expansion of this feature to simplify tax processes and encourage timely filing.
