TPA & Coalition to Congress: A Federal e-File System Creates a Conflict of Interest and Ignores Real Issues at the IRS

David Williams

November 3, 2022

For Immediate Release                                                 Contact: Abigail Graham: (202) 417-7235

November 3, 2022                                                                                

WASHINGTON, D.C. – Today, a group of 22 organizations representing millions of American taxpayers and consumers sent a letter to Congress to voice broad opposition to proposals that vastly expand the size and scope of the Internal Revenue Service (IRS).

In August 2022, Congress passed the Inflation Reduction Act, which included $15 million for a study into the feasibility of the IRS providing a “Free Direct e-File Tax Return System.” The letter explains that if these proposals are enacted, the IRS will face a conflict of interest where it is both preparing Americans’ tax documents and also managing contested returns. These proposals, as well as the broader provisions of the Inflation Reduction Act, ignore the known issues with customer service and cybersecurity at the IRS.

The Taxpayers Protection Alliance (TPA) details the clear data privacy complications that would arise should these policies be enacted. TPA President David Williams said, “The federal government has never been, and should never be, Americans’ tax agent. Since the agency’s inception in 1862, it has proven itself time and time again to be an unfaithful actor, a poor protector of Americans’ privacy & data, and continues to fail at meeting the most basic cybersecurity standards. Any proposal that fails to address these core issues should be met with feverous opposition.”

Along with TPA President David Williams, signatories of the coalition letter to Congress include:

  • Saul Anuzis, President of the American Association of Senior Citizens;
  • Phil Kerpen, President of American Commitment;
  • Dee Stewart, President of Americans for a Balanced Budget;
  • Grover Norquist, President of Americans for Tax Reform;
  • Daniel J. Mitchell, President of the Center for Freedom and Prosperity;
  • Ryan Ellis, President of the Center for a Free Economy;
  • Jeff Mazzella, President of the Center for Individual Freedom;
  • Tom Schatz, President of Citizens Against Government Waste;
  • David McIntosh President of the Club for Growth;
  • David Safavian, Senior Vice President and General Counsel of the Conservative Political Action Coalition (CPAC);
  • Matt Kandrach, President of Consumer Action for a Strong Economy (CASE);
  • Adam Brandon, President of FreedomWorks;
  • George Landrith, President of Frontiers of Freedom;
  • Victor Riches, President & CEO of the Goldwater Institute;
  • Jessica Anderson, Executive Director of Heritage Action;
  • Seton Motley, President of Less Government;
  • Pete Sepp, President of the National Taxpayers Union;
  • Paul Gessing, President of the Rio Grande Foundation
  • Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council;
  • Dallas Woodhouse, Executive Director of the South Carolina Policy Council;
  • James Martin, Chairman/Founder of 60 Plus Association;

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.