#TURBOTAX FREEDOM 2022 FOR FREE#
#TURBOTAX FREEDOM 2022 FREE#

This report (1) describes demographic characteristics of Free File users (2) evaluates IRS's oversight of taxpayer experience provisions and (3) identifies key challenges and alternative approaches that may exist for IRS to help taxpayers file online at no cost. GAO was asked to examine the Free File program. Historically, IRS had agreed that it would not develop its own online filing services in exchange for the participating companies offering free services to eligible taxpayers. IRS and FFI offer free tax filing services to a large majority of taxpayers. By not managing these risks through the development of additional free online filing options for taxpayers, IRS may be unable to achieve its strategic goal to empower all taxpayers to meet their tax obligations. Under the terms of the agreement, individual companies can leave the Free File program at any time, and FFI can end the program if IRS develops a system of its own.

#TURBOTAX FREEDOM 2022 FOR FREE#

Regardless, IRS is not managing the risk of relying on the Free File program as the way it helps taxpayers file for free online. Stakeholders had different views on whether maintaining the current program or IRS developing its own online filing system would provide a better experience for taxpayers. IRS data through most of the 2022 filing season shows that fewer taxpayers are using the program in the year following the departure of one of these companies last year. For example, two large companies recently left the program with one citing the taxpayer experience requirements. IRS and FFI recently extended the current agreement to October 2023 however, short-term extensions have not addressed mounting challenges. Through negotiation between IRS and FFI, opportunities may exist to better align the current agreement with the federal guidelines, such as ensuring access for taxpayers with disabilities. GAO compared the current Free File agreement with federal guidelines for digital services and found differences. IRS checks the companies' compliance with this and certain other provisions. IRS and FFI have an agreement that governs the program, including provisions intended to improve the taxpayer experience. Individual Taxpayers' Filing Methods for Tax Year 2020 Of those who did use the program, 44 percent had an adjusted gross income of $17,000 or less. GAO found that the vast majority of taxpayers eligible for the program used other filing methods, which they may have paid to use. (FFI), a consortium of tax preparation companies, to electronically prepare and file their federal tax returns for free. Taxpayers whose incomes are below a certain threshold can use the Free File program provided by IRS and Free File, Inc.

Turbotax freedom 2022