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DirectFile was created by the IRS, a federal agency, for preparing your federal income tax return, in a manner similar to the streamlined e-file options availab

DirectFile was created by the IRS, a federal agency, for preparing your federal income tax return, in a manner similar to the streamlined e-file options available in other countries (i.e., for the most common/basic situations). There are 50 states, and every single one of them has their own idea of what an income tax return should look like, so a direct file that handled state returns would take several years and hundreds of staff to develop and maintain. The US also has significantly more tax planning/tax structuring opportunities than do other countries, and DirectFile doesn't even try to handle those...but neither do its foreign counterparts. If you have a more complicated tax situation, like most software engineers do, than DirectFile isn't for you, and never was intended for your use case.

ethbr1 2y ago
> so a direct file that handled state returns would take several years and hundreds of staff to develop and maintain. The way to extend this, if the federal government wanted to push it, would be to define a standard export format from IRS DirectFile, containing all the information in it... ... then make some federal money contingent on states implementing a filing system with an import function (for the shared data). Nice clean interface, and still states' choices on if they want to support.
Spivak 2y ago
> so a direct file that handled state returns would take several years and hundreds of staff to develop and maintain Or just contract one of the companies that already do it with a public-private partnership. HR Block or whatever gets paid say 2x their current tax prep revenue in exchange for being the white-label direct-file available for free to everyone. Like these tax prep companies are crazy cheap for just being able to hit import next next next next next submit and never think about taxes ever. The work is already done, why duplicate it?
- dessimus 2y ago
  >Or just contract one of the companies that already do it with a public-private partnership. The IRS tried that already and the 3rd parties just used dark patterns that tricked customers into paying for unnecessary services.
dheera 2y ago
> There are 50 states, and every single one of them has their own idea That's not my problem. The states are part of the country. This is as bad as restaurants charging tips instead of stating one number. Government dudes should meet and work it out between state/federal and give me one damn number. All I want is one number.
- Jtsummers 2y ago
  The US is a federated system, the states' tax laws are independent of the federal tax laws (mostly, there are some interactions in there) and the responsibility for collecting state taxes falls on the state. The federal government cannot step in without authority which would have to be delegated by the states because it is their authority, not the fed's.
- 8note 2y ago
  From you early comment along the lines of "I make my taxes as complicated as possible so that I can save money on taxes" You would never take the one number if you could save money by making it a thousand instead. Eg. if your state did that simplification, youd move to a different state that doesn't have the simplification so you can save a couple bucks on the taxes
- galdosdi 2y ago
  Incorrect. You must not be a US citizen (or else went to a poor quality K12 school that failed to teach the basic civics) States are NOT an administrative subdivision of the larger country. This is a common misconception. They are not at all like Japanese prefectures, not like Canadian provinces, nor like the counties or parishes that US states are subdivided into. States are fully sovereign entities that retain to this day certain inalienable rights vis a vis the federal government. A good analogy is that the US is more like a stronger version of the EU. States like New York and Texas within the US are more like Germany or France-- they've ceder some rights to the federation but retain many others. The US constitution, which is short and easy to read and required reading for the US Citizenship test, clearly outlines which powers are reserved for which part. >That's not my problem. The states are part of the country.

ethbr1 2y ago

> so a direct file that handled state returns would take several years and hundreds of staff to develop and maintain. The way to extend this, if the federal government wanted to push it, would be to define a standard export format from IRS DirectFile, containing all the information in it... ... then make some federal money contingent on states implementing a filing system with an import function (for the shared data). Nice clean interface, and still states' choices on if they want to support.

Spivak 2y ago

> so a direct file that handled state returns would take several years and hundreds of staff to develop and maintain Or just contract one of the companies that already do it with a public-private partnership. HR Block or whatever gets paid say 2x their current tax prep revenue in exchange for being the white-label direct-file available for free to everyone. Like these tax prep companies are crazy cheap for just being able to hit import next next next next next submit and never think about taxes ever. The work is already done, why duplicate it?

dessimus 2y ago
>Or just contract one of the companies that already do it with a public-private partnership. The IRS tried that already and the 3rd parties just used dark patterns that tricked customers into paying for unnecessary services.

dheera 2y ago

> There are 50 states, and every single one of them has their own idea That's not my problem. The states are part of the country. This is as bad as restaurants charging tips instead of stating one number. Government dudes should meet and work it out between state/federal and give me one damn number. All I want is one number.

Jtsummers 2y ago
The US is a federated system, the states' tax laws are independent of the federal tax laws (mostly, there are some interactions in there) and the responsibility for collecting state taxes falls on the state. The federal government cannot step in without authority which would have to be delegated by the states because it is their authority, not the fed's.
8note 2y ago
From you early comment along the lines of "I make my taxes as complicated as possible so that I can save money on taxes" You would never take the one number if you could save money by making it a thousand instead. Eg. if your state did that simplification, youd move to a different state that doesn't have the simplification so you can save a couple bucks on the taxes
galdosdi 2y ago
Incorrect. You must not be a US citizen (or else went to a poor quality K12 school that failed to teach the basic civics) States are NOT an administrative subdivision of the larger country. This is a common misconception. They are not at all like Japanese prefectures, not like Canadian provinces, nor like the counties or parishes that US states are subdivided into. States are fully sovereign entities that retain to this day certain inalienable rights vis a vis the federal government. A good analogy is that the US is more like a stronger version of the EU. States like New York and Texas within the US are more like Germany or France-- they've ceder some rights to the federation but retain many others. The US constitution, which is short and easy to read and required reading for the US Citizenship test, clearly outlines which powers are reserved for which part. >That's not my problem. The states are part of the country.