With April 15^th (Tax Filing Day) in the rear-view mirror, I can understand anyone who doesn’t care to even think about taxes for a while. However, the nascent IRS Direct File program is reportedly on the DOGE elimination list, and I couldn’t be happier to have read the news. Touted as a “free government service,” the Direct File System would allow some taxpayers to file their annual returns using an IRS internal online system.

A quick Internet search on “free tax filing” will produce many providers. The free feature is not unique to the government Direct File program.

For several months, I have been complaining about the IRS Direct File plan, which offers free tax preparation and filing to a growing number of Americans. In my opinion, this Boondoggle, which is being funded by the inappropriately named Inflation Reduction Act, presents a blatant conflict of interest. Direct File allows a government entity to oversee its own revenue sources. What could possibly go wrong?

Paid Professional Tax Preparers, including CPAs and others, owe a fiduciary obligation to the taxpayers they serve. As fiduciaries, Professional Tax Preparers are required to place the interests of their clients (taxpayers) ahead of any personal interest, much like fiduciary rules for fee-only Certified Financial Plannerâ Professionals. We are not able to prepare Tax Returns, but we will work with your professionals.

Looking deeper into this complex situation, how “free” is a government-provided service, such as Direct File, that requires the IRS to hire, train, and maintain thousands of new employees? Who ultimately pays for the salaries and benefits? Further, what will these employees do during the non-filing seasons? Increased audits?

Everyone knows the sinking feeling that comes over a taxpayer upon finding an envelope in the mail with the dreaded IRS logo on the upper left. There is no secret as to why. The IRS is an exception to our democratic system of law and order, in that when the IRS accuses a taxpayer of wrongdoing, the burden of proof is on the taxpayer. With an IRS accusation, you are guilty until proven innocent. This is antithetical to our way of life and can result in a requirement for the accused taxpayer to essentially prove a negative.

Most of us do the right thing every year, as we report our income, pay the taxes due according to the law, and compensate our hired Tax Preparer Professionals if needed. Lather, rinse, and repeat annually.

For now, we’ll bid the Direct-File IRS system a comforting farewell.