The clash between Republicans and the Biden administration over the free government-run e-filing program piloted by the IRS is heating up, with the pilot drawing criticism from mostly Republican-led states that argue the tool will do more harm than good for taxpayers.
In a letter to the IRS and Treasury Department Monday, 18 state financial officers and treasurers urged the IRS to shut down Direct File, which launched to a limited number of taxpayers in March.
“States will lose out on payments from Direct File taxpayers who owe state taxes but incorrectly assume that Direct File covers federal and state ...
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