Why Free Tax Prep Is So Hard To Find

The video discusses the complexities of the U.S. tax system, highlighting the challenges faced by taxpayers due to lobbying by tax preparation companies and underfunding of the IRS. It explores the IRS Free File system, its low usage, and the obstacles taxpayers face. The concept of return free filing is introduced, with a case study from California. The video concludes with the limitations of the current system and the difficulties faced by taxpayers, especially those with limited resources.

What is one of the main reasons the tax code remains complicated?

• Public demand for complexity

• Insufficient government interest

• Lobbying by large tax preparation services

• Lack of technology

What percentage of tax filers actually used the IRS Free File system in 2020?

• 10%

• 25%

• 50%

• 3%

What is a common issue faced by users trying to access free tax preparation services?

• Lack of internet access

• Too many free options to choose from

• Misleading services that appear free but charge fees

• No available free services

What was a key feature of the return-free filing pilot program in California?

• Taxpayers had to manually enter all their data

• The government pre-filled tax returns for taxpayers

• It was only available to businesses

• It required a fee to participate

What is one of the main challenges faced by the IRS due to underfunding?

• Difficulty in answering taxpayer calls

• Inability to collect taxes

• Lack of tax forms

• Overstaffing

What is a significant consequence of the current tax system for many Americans?

• Increased savings

• Frustration and reliance on paid services

• Higher tax refunds

• Simplified tax filing

What is a major factor contributing to the IRS's inability to simplify the tax filing process?

• Public opposition

• Lobbying by tax preparation companies

• Lack of technology

• Insufficient tax forms