The U.S. Treasury Department is expanding a program allowing citizens to file taxes online for free to all 50 states, a move that went in the opposite direction called for by Chief Financial Officer Jimmy Patronis.
Patronis was one of 21 financial officials from 18 states who signed a letter in March asking Treasury Secretary Janet Yellen, Treasury Deputy Secretary Wally Adeyemo and IRS Commissioner Daniel Werfel to shut down the Direct File program.
"IRS Direct file was dead on arrival from the get-go, with low usage numbers and little interest from taxpayers who already use one of the many free services available to them," Patronis spokesman Devin Galetta wrote in an email.
"The CFO believes that instead of spending millions of taxpayer dollars to roll out direct file, the IRS should be working to streamline the exorbitant tax code so hard-working families and businesses can keep more of their money in their pockets where it belongs."
Direct File was set up as a pilot program this year available to citizens in 12 states, including Florida. It allows users to file their taxes directly with the federal government, avoiding a tax preparer or online aide, such as TurboTax.
Treasury officials, though, lauded the program, and said it was used by 140,000 taxpayers, who received more than $90 million in refunds while avoiding $5.6 million in filing costs.
"President (Joe) Biden is committed to saving Americans time and money and ensuring families receive the tax benefits they're owed. Providing a free tool to all Americans who want the option to file directly with the IRS is key to achieving those goals," Yellen said in a released statement.
"After a successful pilot, we are making Direct File permanent and inviting all 50 states to offer this free filing option to their residents. The Treasury Department and IRS look forward to working with states to expand Direct File for Americans across the country."
The program will be available to citizens in all 50 states and the District of Columbia starting next year.
Patronis sees it as a move to extract more money out of taxpayers.
"The CFO feels this is just another way for Washington to pry into Floridians wallets and this is exactly why he worked with the legislature to create the Florida Tax Advocate to go to work for Florida taxpayers when the inevitable IRS problems arise," Galetta wrote.
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