Senators Criticize IRS Filing ProgramBy JIM ABRAMS, Associated Press Writer
Thursday, November 2, 2006
(11-02) 14:53 PST WASHINGTON, (AP) --
Leaders of the Senate Finance Committee say a deal between the Internal
Revenue Service and private tax preparers that allows people to submit
returns by computer is too restrictive and discourages electronic filing.
Sens. Charles Grassley, R-Iowa, and Max Baucus, D-Mont., said declines
in participation in the Free File program show it is not working.
"If the tax preparation industry cannot provide free basic filing services
without hidden costs and traps, perhaps it is time to consider having the
IRS provide a direct filing portal to enable all taxpayers to file
electronically without cost," they wrote IRS Commissioner Mark Everson
on Thursday.
A recent report by an internal watchdog at the Treasury Department noted
that fewer people were using the program after renegotiating of the contract
between the IRS and the private industry that went into effect in January.
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