Democrats and consumer advocates have been pushing for the Internal Revenue Service to offer free online tax filing on its website, particularly for people with straightforward returns. Their core argument: Tax-preparation companies charge middle-income Americans for what advocates think should be a free public service.

The companies, meanwhile, are boosting lobbying spending and leaning on lawmakers to fight a change that could shrink their revenue, and they are emphasizing free options already available for taxpayers. They see the changes under consideration as a first step toward an even bigger threat in which the IRS could use information it gets from employers and other sources to prepare a first draft of taxpayers’ returns for them. The IRS is due to release a report this week on a possible Direct File system — think TurboTax but on the agency’s website — and the Biden administration will then decide whether to pursue it.

Source: IRS Weighs Creating a Government-Run Tax-Prep Option – Slashdot