The Tax Filing Simplification Act of 2022 was presented on Wednesday by Sen. Elizabeth Warren, a Democrat from Massachusetts, and 22 other legislators. Its goals are to establish “free and easy” tax filing tools and reduce the amount of time needed to prepare returns.
According to Warren, the measure would streamline the tax filing process for millions of Americans, saving them hours and hundreds of dollars.
Simplified filing tools would make sure that more qualified people, including millions of low-income Americans, receive significant tax refunds, including the Child Tax Credit and Earned Income Tax Credit, along with cutting expenses and removing red tape for all taxpayers. Recent polling shows that 77% of Americans support this legislation, according to Warren.
According to Warren, the average American “spends 13 hours and $240 per year to file their taxes—to that’s much time and too much money. This is the outcome of businesses like Intuit destroying the Free File program to make huge profits.
According to Warren, Congress “should pass my Tax Filing Simplification Act, and the IRS itself can and should implement my plan to streamline the tax filing process for millions of Americans and cut their costs.”
The Tax Filing Simplification Act does the following:
Prohibits the IRS from signing contracts that would limit its ability to offer free online tax preparation or filing services.
Directs the IRS to create a free, online tax preparation and filing program that would enable all taxpayers to prepare and file their taxes with the federal government directly rather than being required to disclose sensitive information with outside parties.
Enhances taxpayer data access by enabling all taxpayers to download third-party-provided tax data that the IRS already has into a program of their choice, saving time and lowering the possibility of math errors on W-2 income or Child Tax Credit payments that result in severe processing delays.
According to Warren, the average American “spends 13 hours and $240 per year filing taxes—that’s a lot of time and money.” This is the result of companies like Intuit destroying the Free File programme to make huge profits. It was quite emphasized.
Directs the IRS to include other tax advantages, including the EITC, in the Child Tax Credit non-filer tool’s scope.
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Enables qualified taxpayers with straightforward tax situations to select the return-free option, which offers a pre-prepared tax return with an estimated income tax due or rebate amount already calculated.
Requires anybody participating to authenticate his or her identity before accessing tax data, and mandates that these data and filing tools be made available through a secure internet function.
Reduces tax fraud by allowing the IRS to cross-check third-party income information earlier in the tax season before issuing refunds.
By March 1, 2023, the IRS is to broaden the Child Tax Credit non-filer tool to include other tax advantages, including the EITC.
