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IRS direct file shut down, driving up costs for PA taxpayers
The IRS Direct File program saved taxpayers millions by reducing errors and costs but was canceled to focus on affordability despite projected $747 million annual savings in Pennsylvania.
- The Trump administration canceled IRS Direct File, which had been used by nearly 300,000 taxpayers across 25 participating states, despite projected $300 million in savings.
- Direct File was created to fill a gap because Volunteer Income Tax Assistance is chronically underfunded and cannot meet demand, while commercial tax-prep companies market 'free' filing though fewer than 3% actually file for free despite about 75% qualifying.
- Early data showed Direct File reduced errors, cut audits, and lowered IRS customer-service demands, while a 2024 David Binder Research survey found 74% of pilot users preferred it, supporting $300 million projected IRS savings.
- For Pennsylvania, a new analysis found it could save about $300 million annually if it used IRS Direct File, which the Trump administration ended.
- Low-Income taxpayers rely on Volunteer Income Tax Assistance , which about 75% qualify for but fewer than 3% file free, according to advocates.
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46 Articles
46 Articles
Coverage Details
Total News Sources46
Leaning Left7Leaning Right11Center7Last UpdatedBias Distribution44% Right
Bias Distribution
- 44% of the sources lean Right
44% Right
L 28%
C 28%
R 44%
Factuality
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