King, Colleagues Secure Probe into Flawed, Misleading Tax Filing Program

WASHINGTON, D.C. - After urging the Government Accountability Office (GAO) to initiate a probe into the Free File program, a current partnership between the Internal Revenue Service (IRS) and private tax preparation companies, U.S. Senators Angus King (I-ME), Elizabeth Warren (D-MA), and Ron Wyden (D-OR), secured confirmation from GAO Acting Managing Director David Pownerthat it will launch a new investigation into the problematic program. The probe comes amidst the Trump administration's decision to end the Direct File program - an effort to offer free direct online tax filing assistance to taxpayers without private company involvement.

GAO previously evaluated the Free File program and highlighted the need for the government to develop new ways for lower- and middle-income Americans to file their taxes for free in April 2022. In response, the Biden administration created the Direct File program, which allowed Americans, including taxpayers in Maine, to file their tax returns online, for free with no hidden or surprise fees, and directly with the IRS.

"We have serious concerns that Free File cannot efficiently, effectively, and securely serve the taxpayers who are statutorily entitled to free tax filing services," wrote the lawmakers to GAO on May 17^th.

"GAO accepts your request as work that is within the scope of its authority. We anticipate that staff with the required skills will be available shortly to initiate an engagement," responded GAO.

The new GAO investigation will help evaluate the program's user experience, accessibility, accuracy, and costs, and address broader concerns surrounding Free File's underperformance and the difficulties that low- and middle- income Americans encounter when trying to truly file their taxes for free.

Senator King has consistently advocated for tax fairness. Earlier this year, he introduced the Stop Corporations and High Earners from Avoiding Taxes and Enforce the Rules Strictly (Stop CHEATERS) Act which would restore and revitalize the IRS with additional funding for tax enforcement focused upon high-income tax evasion, technology operations support, systems modernization, and taxpayer services like free tax-payer assistance. In December last year, Senator King urged the Trump Administration to help Americans get more responsive service and expedited refunds by restoring staff and resources at the Taxpayer Advocate Service (TAS), the independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve issues within the IRS.

The full text of the Senators' May 17^th letter to GAO can be found here.

GAO's response can be found here and below.

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The Honorable Ron Wyden

Ranking Member

Committee on Finance

United States Senate

The Honorable Angus S. King, Jr.

United States Senate

The Honorable Elizabeth Warren

United States Senate

Thank you for your letter requesting that the Government Accountability Office update its April 2022 report, "IRS Should Develop Additional Options for Taxpayers to File for Free."

GAO accepts your request as work that is within the scope of its authority. We anticipate that staff with the required skills will be available shortly to initiate an engagement. Your request has been assigned to Mr. Cardell D. Johnson, Managing Director, Strategic Issues. Mr. Johnson or a member of his team will contact the staff points of contact to discuss the request, your needs, and the engagement objectives, scope, and methodology in accordance with GAO's protocols. As applicable, we will also be in contact with the cognizant Inspector General's office to ensure that we are not duplicating efforts. If an issue arises during this coordination, we will consult with you regarding its resolution.

Sincerely yours,

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