The Failed Free File Program Should Be Reformed, Not Codified

Reprinted from Tax Notes, July 16, 2018, p.317, Volume 160, Number 3

UC Davis Legal Studies Research Paper

17 Pages Posted: 31 Jul 2018  

Dennis J. Ventry

University of California, Davis - School of Law

Date Written: July 16, 2018

Abstract

This article details how the current IRS Free File program harms taxpayers and tax administration. It lays blame for the program’s harmful effects on the IRS’s private-sector partners, the Free File Alliance (FFA). Under the auspices of Free File, FFA companies up-sell paid products to Free File users, violate taxpayer privacy laws, strip taxpayers of legal rights in the event of disputes with FAA companies, and negligently expose users to cyber attacks.

To save the program, Congress should radically restructure it to focus on providing absolutely free e-filing services to low- and middle-income taxpayers. To assist in the restructuring efforts, Congress should ask the Government Accountability Office to provide a top-to-bottom assessment of the program. In addition, Congress should authorize the IRS to verify—before, during, and after each tax season—that FFA companies disclose all up-selling activities and revenues, reveal to whom they sell users’ return information, (iii) ensure users’ legal rights and remedies, and (iv) safeguard users from cyber threats. Alternatively, the IRS should terminate the program and launch its own free e-filing service by leveraging its increasingly robust online taxpayer accounts.

Suggested Citation

Ventry, Dennis J., The Failed Free File Program Should Be Reformed, Not Codified (July 16, 2018). Reprinted from Tax Notes, July 16, 2018, p.317, Volume 160, Number 3; UC Davis Legal Studies Research Paper. Available at SSRN: https://ssrn.com/abstract=3219900

Dennis J. Ventry (Contact Author)

University of California, Davis - School of Law ( email )

UC Davis School of Law
400 Mrak Hall Drive
Davis, CA 95616-5201
United States
530-752-4566 (Phone)

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