PRESS RELEASE: 147 National, State, And Local Organizations Support The Tax Filing Simplification Act

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For immediate release: July 13, 2022

147 NATIONAL, STATE, AND LOCAL ORGANIZATIONS SUPPORT THE TAX FILING SIMPLIFICATION ACT

Dear Senators and Representatives:

As groups dedicated to promoting the well-being of children and families and advancing social,
racial, gender, disability, worker and economic justice, we write to express our strong support
for the Tax Filing Simplification Act (TFSA) of 2022. This legislation would require the
Department of Treasury to implement meaningful reforms that would greatly simplify the
process by which families file their tax returns. Doing so would reduce the time and stress tax
filing currently involves, and improve family economic well-being by reducing reliance on paid
tax preparers and increasing access to critical credits and benefits, including the Child Tax
Credit (CTC) and the Earned Income Tax Credit (EITC). As the country is told to expect
backlogs and delays this filing season, we believe our nation’s leaders must embrace this
opportunity to make lasting changes to how the Internal Revenue Service (IRS) serves the
American people.

The tax filing process is incredibly complicated and burdensome for individuals and families
and results in millions of people losing out on the credits and benefits that they are owed.
However, the tax filing process does not need to be so complicated and we can and should
simplify this process so more families receive the money that is owed to them. Taxpayers in
other countries are able to utilize return-free filing, a service the IRS was empowered to provide
when the Internal Revenue Service Restructuring and Reform Act of 1998 became law but
never implemented. It is indefensible that ordinary taxpayers spend an average of 13 hours
doing their taxes and often pay more than $200 for paid filing services when the government
already has the data needed for most taxpayers with simple returns. This burden falls especially
heavily on taxpayers with low incomes, whose tax refunds are significantly reduced after the
cost of tax preparation and refund anticipation checks are taken into account.

The Tax Filing Simplification Act of 2022 would solve this colossal policy failure by making it
easier and more affordable for the vast majority of families to file taxes. It would also
significantly reduce the administrative burden on families, helping to expand access to critical
support and advance racial equity. It does so by:

Limiting the information families need to provide to the IRS when filing taxes. The
bill requires the IRS to provide people with their preliminary tax returns pre-populated
with wage and other data that is already collected through information reporting.
Moreover, under this legislation, taxpayers with simple returns could choose to have
their returns actually prepared by the government. This would both reduce the financial
burden on families who are struggling to make ends meet and would also reduce the
errors and other problems that collectively add to the IRS’s backlog.
Creating free-U.S. government-owned tax filing software to replace the confusing
and ill-implemented corporate Free File partnerships. The corporate Free File
partnerships have been plagued with issues and malfeasance throughout the program’s
tenure. A free, online tax filing system implemented by the US government would ensure
the Free File program is truly aimed at assisting taxpayers and not padding the bottom
lines of huge corporations. It would also lay the foundation for a true modernization of
the IRS’s antiquated technology.
Making it as easy as possible for families to access the federal and state tax
credits and benefits they are owed. The legislation builds upon the strides that the IRS
made to ensure families and individuals can access the Economic Impact Payments and
CTC. Specifically, the TFSA of 2022 expands the streamlined tax benefits non-filer
portal, ensuring that it is continually moving forward while extending it beyond non-filers
– or people who are not required to file tax returns – typically those who fall below the
income threshold. And, it ensures this service will be available year-round and
implemented equitably by laying out requirements such as using accessible language,
being available in multiple languages, being user-tested and improved, being mobile
technology-friendly, and being advertised to consumers.

As families continue to struggle with pandemic-related stressors, inflation and global unrest,
Congress must take every step possible to ease burdens on everyday people and ensure they
can access the tax benefits they are owed. Requiring the IRS to provide ordinary taxpayers with
their own data and doing the math for them would resolve minor problems before they become
major problems, freeing up both the public’s and government’s resources. And, giving families
the option to no longer have to pay for tax preparation services while making it easier for eligible
persons to receive the money they are due is a commonsense way to promote the economic
security and well-being of all families.

We urge you to co-sponsor the Tax Filing Simplification Act of 2022 and work to see it
enacted into law as soon as possible.

Sincerely,

National Organizations
Center for the Study of Social Policy
Children’s Defense Fund
Public Citizen
AFL-CIO
Alliance for a Just Society
American Family Voices
American Federation of State, County and Municipal Employees (AFSCME)
American Federation of Teachers
American-Arab Anti-Discrimination Committee (ADC)
Americans for Democratic Action (ADA)
Americans for Financial Reform
Americans for Tax Fairness
Blue Future
Center for American Progress
Center for Disability Rights
Center for Economic and Policy Research
Center for Law and Social Policy (CLASP)
Center for New Revenue
Children’s HealthWatch
Coalition on Human Needs
CommonDefense.us
Community Change Action
Consumer Action
DemCast USA
Economic Policy Institute
Economic Security Project Action
Fayetteville Police Accountability Community Taskforce
Food Research & Action Center
Futures Without Violence
Humanity Forward
ideas42
In the Public Interest
Income Movement
Institute for America’s Future
Institute for Policy Studies- Program on Inequality
Institute on Taxation and Economic Policy
ISAIAH (MN)
Jain Family Institute (JFI)
Jobs With Justice
Main Street Alliance
MANA, A National Latina Organization
Missionary Oblates of Mary Immaculate JPIC
MomsRising
MoveOn
National Association of Hispanic Elderly
National Association of Social Workers
National Black Justice Coalition
National Coalition for Asian Pacific American Community Development (CAPACD)
National Community Action Partnership
National Consumer Law Center (on behalf of its low income clients)
National Diaper Bank Network
National Employment Law Project
National Immigration Law Center
National LGBTQ Task Force Action Fund
National NeighborWorks Association
National Network for Arab American Communities
National Organization for Women
National Resource Center on Domestic Violence
National Women’s Law Center
NETWORK Lobby for Catholic Social Justice
Our Revolution
Oxfam America
ParentsTogether Action
Partnership for America’s Children
Public Good Law Center
Responsible Wealth
RESULTS
RootsAction.org
Share Our Strength
Sojourners
State Revenue Alliance
Take On Wall Street
The Arc of the United States
Unitarian Universalists for Social Justice
United Church of Christ Justice and Local Church Ministries
United for a Fair Economy
Universal Income Project
Women’s March

State and/or Local Organizations
Action NC
All About the Ballots
Alliance for a Better Utah
CASA, Inc
Causa
Children’s Action Alliance
Church Women United in New York State
Citizen Action of Wisconsin
Colorado Consumer Health Initiative
Colorado Fiscal Institute
Community Action Team/Child & Family Development Programs
Community Legal Services of Philadelphia
Conscious Talk Radio
Connecticut Citizen Action Group
Cooperative Development Institute
Decoding Dyslexia Oregon
Family Forward Oregon
Florida Alliance for Retired Americans
Friends of Outdoor School
Fund Our Future
Golden State Opportunity
Hawaii Children’s Action Network Speaks!
Housing Action Illinois
Indivisible Georgia Coalition
Indivisible Illinois
Indivisible Northern Nevada
Indivisible Sonoma County
Lake County Democratic Black Caucus
Lake County Democratic Veterans Caucus
Legacy Democratic Club
Maryland Center on Economic Policy
MCCOY (Marion County Commission on Youth, Inc.)
NC Child
New Mainers Alliance
New York Communities for Change
North Country NYPAN
Northwest Progressive Institute
Oregon Center for Public Policy
Our Children Oregon
Our Maryland
PA Budget and Policy Center
Partners for a Hunger-Free Oregon
PEER/NYPAN Suffolk County
Prepare + Prosper
Progress Florida
Relief Nursery Lane County
RESULTS DC/MD
RESULTS-Massachusetts group
RESULTS Sierra Nevada
Rise Up WV
San Diego for Every Child
SPAN Parent Advocacy Network
Shriver Center on Poverty Law
TakeAction Minnesota
Tax Fairness Oregon
The 99% PA
The Arizona Center for Economic Progress
Turner Enrichment Program
Upper West Side Action Group: MoveOn/Indivisible/Swing Left
UUFHCT
Venice Resistance
Virginia Organizing
Voices for Vermont’s Children
We The People– PA
West Virginians for Affordable Health Care
Westchester Children’s Association
WV Citizen Action Group
Young West Virginia Forward