Letters: The IRS’ Direct File tax return program is good news for taxpayers

In May, the Internal Revenue Service announced plans to pilot a direct e-file system known as Direct File in response to taxpayers’ desire for a method to freely file their tax returns electronically. Soon after, criticism and misinformation started even before taxpayers could try the program.

It’s important to note what Direct File would be. In his recent op-ed (“The IRS has an alternative to TurboTax. But will that widen the racial wealth gap?” July 11), Benjamin Chavis Jr. appears to confuse Direct File with “return-free filing,” which would involve the IRS automatically filing tax returns for taxpayers. This is not what Direct File will be. It will be a self-directed online platform allowing taxpayers to file for free directly with the IRS. Therefore, Chavis’ concern that Direct File may result in taxpayers overpaying and missing out on valuable tax credits is not founded based on available research. Furthermore, taxpayers can compare the tax return prepared with Direct File with other services.

Based on research with working families, my colleagues and I argue a Free Direct e-file tool and other critical reforms hold promise for advancing racial equity in tax policy. There is no evidence for claims by tax industry critics that Direct File would expose vulnerable taxpayers to unfair treatment and lower refunds. Instead, research by the Government Accountability Office and the IRS found that close to half of returns prepared by paid preparers contained errors. The annual task of tax filing needs reform to ensure all taxpayers receive the credits they are eligible for and their tax returns are accurate, so they do not face a costly audit.

The tax preparation industry has been embroiled in controversy over the last several years, signaling need for greater oversight and a government-administered tax filing option. Recently, Congress released a report finding major tax preparation companies may have violated privacy laws by sharing taxpayer data with tech firms. Recently, Intuit Inc., the company behind TurboTax, paid a $141 million settlement to 4.4 million taxpayers for what was described as deceptive advertising by Intuit that its service was free when it was not.

Taxpayers deserve a fully free tax filing method that is transparent, one in which their private information is not shared or sold. The IRS’ Direct File is potentially an important step in accomplishing those goals.

— Dylan Bellisle, researcher, Project for Middle Class Renewal, University of Illinois at Urbana-Champaign

Going after tax dodgers

In the United States, we have two income tax systems. Those of us who get paychecks receive a W-2 statement of our earnings. The Internal Revenue Service gets a copy so it knows what we have earned before we file. It is easy for the agency to check on us if it has a need. Those who are self-employed are trusted to report their earnings. Many of them are high-income earners.

It is easy to say that everyone dodges a little. However, it is a concern that some people dodge more than a little. To guard against this, the IRS has agents who check on the people who appear to be dodging more than a little.

On the front page of Saturday’s Tribune, there was an article stating that in just the last couple of months, the IRS was able to recover $38 million from more than 175 high-income tax dodgers (“IRS collects $38M from high-income tax dodgers”). It would seem this is good news. However, congressional Republicans want to gut the IRS.

With fewer or no IRS agents, it would be easier for high-income tax dodgers to get away with their refusal to pay their share. In fact, they would be able to get away with even further tax dodging. It makes you wonder if these Republican congressional members have any interest in the well-being of our country.

— Jerome C. Yanoff, Chicago

Make consequences stricter

Thank you for the article about possible ethics code violations by Ald. Jim Gardiner and former Mayor Lori Lightfoot (“Ex-mayor, alderman under scrutiny,” July 15). Good work by the Office of the Inspector General.

Wouldn’t more severe consequences for ethics violations help change the city’s corrupt culture for the better?

— Richard Prince, Chicago

Ignorance about government

Our legislative branch is being held hostage by an Alabama senator who, after his election, could not correctly name the three branches of our government.

Unfortunately, this is becoming more common, as seen by the antics of elected officials. They routinely demand their branch do things that are clearly not allowed by our Constitution and our laws. Perhaps it is time to demand that anyone seeking office, for any branch, be required to pass a test on American government that most high school pupils must complete.

— Joanne Hoffman, Highland Park

Coverage of Chicago Fire

I have been a big soccer fan for more than 60 years, and I am a regular visitor to the United States. During that time, I have watched Chicago Fire, both at Toyota Park and Soldier Field, and I think they play very good and entertaining soccer. For a long time, I have been very disappointed by the Chicago media’s interest in Chicago Fire games.

Game after game, we get only the result in the Tribune’s paper, which I find very strange. The club, players, leaders and fans deserve so much more than this.

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Soccer is the most popular sport in the world, and interest in it is growing in the United States. I am looking forward to the women’s World Cup this summer and hope that the Tribune will give us coverage.

— Kjell Aasum, Norwegian journalist, Chicago

Extra charge a money grab

While eating at a restaurant on Navy Pier, I read at the bottom of the receipt: “As a way to offset rising costs associated with the restaurant (food, beverage, labor, benefits, supplies), we have added a 3% surcharge to all checks. We do this in lieu of increased menu prices. You may request to have this taken off your check, should you choose.”

Considering how expensive all restaurants are on Navy Pier, I was very unimpressed with this money grab. From now on, if we ever go back to the Pier, I will ask for the 3% to be removed.

— Steven Kite, Glencoe

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