In a letter Monday to Treasury Secretary Janet Yellen, Deputy Secretary Wally Adeyemo and Internal Revenue Service (IRS) Commissioner Daniel Werfel, 21 top financial officials from 18 states said the costs of the IRS Direct File program “far outweigh any potential benefits” and will create new issues for taxpayers and states, alike.
Direct File has the potential to do more harm than good for taxpayers. It will only enable them to file their federal tax returns. Taxpayers who are unaware that they must separately file state returns will not receive anticipated state refunds this spring.”
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