Comment Re:!free, good riddance (Score 1) 92
The money spent on this program is estimated to be somewhere between $41M and $129M. At the low end, $41M, that's $138 per return, or $434 at the high end.
I believe these were all simple returns, returns that could easily have used any of the existing free filing services, at no cost to the taxpayer.
These aren't just startup costs; the IRS estimated the running costs to be between $64M and $249M annually (so probably around $750M annually).
The high per-return cost is due to two things. The pilot year was 2024 (2023 earnings) so we've only had one year, and it was limited to 13 states.
The rollout year for almost anything is a money loser, and especially would have high per capita costs.
The existing corporate free filing services are limited to poor people, and there are many of us who don't want to be data-mined or risk insiders such as temp worker off shore clerks selling the keys to our house to thieves.
As for the on-going costs, the IRS spent $18.2 billion on operations last year, but doesn't provide breakdowns on the cost of processing 1040 forms. Supposedly, processing the paper forms is a big part of that and the IRS wants to cut down on processing paper.
The IRS still must process every form submitted according to IRS rules whether it comes in the mail, from Intuit, or some DirectFile type program. At some point it all becomes electronic.
The only real overhead of Direct File is the cost of building website pages for us to type in our numbers.