by Corinne Murdock | Oct 18, 2023 | News
By Corinne Murdock |
Gov. Katie Hobbs announced Tuesday that Arizona will participate in the Internal Revenue Service (IRS) free tax filing pilot program.
Under the IRS Direct File Pilot Program, certain Arizonans may file their state and federal returns directly to the IRS for free. While the program would come at no direct cost to those eligible, taxpayers ultimately subsidize this additional service.
In a press release, Hobbs said that the program would make filing taxes “convenient and easy.” Although Hobbs said that taxpayers could file both their state and federal tax returns through the pilot program, the IRS noted that its program would not prepare state returns but would instead guide taxpayers to a state-supported tool to file a stand-alone state tax return.
It’s unclear which Arizona taxpayers may participate: the IRS disclosed that it hasn’t finalized its determinations of who would qualify. Expected, but not finalized, eligibility includes: W-2 wage income, Social Security and railroad retirement income, unemployment compensation, interest of $1,500 or less, Earned Income Tax Credit, Child Tax Credit, Credit for Other Dependents, standard deduction, student loan interest, and educator expenses.
IRS Commissioner Danny Werfel promised to reporters in a call on Tuesday that this program wouldn’t replace popular private tax preparation companies like H&R Block or Intuit’s TurboTax.
“I can’t stress enough that Direct File, if pursued further after the pilot, would be just another choice taxpayers have to help them prepare their tax returns,” said Werfel.
Intuit spokesman Derrick Plummer claimed in a statement to PBS that the direct file program would cost billions of dollars.
“An IRS direct-to-e-file system is redundant and will not be free — not free to build, not free to operate, and not free for taxpayers,” said Plummer.
California, Massachusetts, and New York are the three other states that signed onto the pilot program for the 2024 filing season. The IRS noted that taxpayers in states without an income tax may be eligible to participate as well: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
The direct file pilot doesn’t replace another existing free direct filing service by the IRS, Free File Program (FFP): a public-private partnership between the IRS and Free File, Inc., or Free File Alliance (FFA), a consortium of tax preparation and filing software industry companies. Those with an income of $73,000 or less qualify for a free federal tax return under that existing program.
The FFP was created in 2002 with the agreement that the IRS wouldn’t create its own free tax-filing software. However, the IRS removed that provision from the FFP memorandum in late 2019 following ProPublica investigative reporting that then-members of the FFA, namely Intuit and H&R Block (who together served 70 percent of FFA users), were charging FFP-eligible taxpayers for tax return services. The Treasury Inspector General for Tax Administration (TIGTA) in a follow-up audit found that over 14 million FFP-eligible taxpayers ended up paying for a commercial service for tax returns.
H&R Block departed the FFP in 2020, then Intuit in 2021. Intuit settled last year for $141 million over the claims.
The Government Accountability Office (GAO) found last year that the FFP has been vastly underutilized by eligible taxpayers, and that the IRS faced risks by relying on the private industry to provide free tax filing. Of the 71 percent of taxpayers eligible for FFP, only about three percent participated in 2020. The GAO recommended the IRS develop other free tax e-filing options.
In 2020, TIGTA reported that not many taxpayers used the FFP because it was rife with “complexity and insufficient oversight.”
The IRS promised to publicly share the results of the direct file pilot program once completed. More information on the program may be discovered here.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Daniel Stefanski | Oct 16, 2023 | News
By Daniel Stefanski |
Arizona sheriffs are pushing state officials to increase funding for border security.
Last week, the Arizona Sheriff’s Association sent separate letters to Governor Katie Hobbs and legislative leaders. Those letters requested Arizona to “double its contribution to local law enforcement to allow (sheriffs) to deploy more resources to interdict human and drug smugglers.”
The sheriffs opened their letter by pointing to the $12 million included in the 2023-24 state budget “to help law enforcement handle crime related to illegal border crossers.” Though these sheriffs were “grateful for the assistance,” they asserted that “the situation at the border has only worsened” since the funds were negotiated by the Arizona Legislature and Governor Hobbs.
David Rhodes, the President of the Association and the Yavapai County Sheriff told AZ Free News, “It is our local communities that are grappling day in and day out with the impacts of an insecure border. We are not just pulling over DUI suspects or patrolling neighborhoods. Sheriffs deputies across the state have become quasi-border patrol agents, seizing fentanyl pills, and arresting human traffickers. And the problem isn’t getting better, it is only getting worse.”
In their letter, the sheriffs wrote, “As Governor and the leaders of our Legislature, we understand you must balance spending priorities. And the federal government holds the ultimate responsibility for securing our border and stanching the flow of drugs and illegal crossers. However, can there be any doubt about the federal government’s abject failure in this area? Your eyes haven’t deceived you. Indeed, daily the media attention highlights the disastrous impacts of an open border. The scourge of fentanyl spreads like a cancer in communities large and small. Much of that deadly drug flows through Arizona. Arizona sheriff’s deputies seize millions of fentanyl pills every year. And the smuggling through our state’s highways shows no signs of abating.”
Just last month, a Cochise County Deputy Sheriff was seriously injured as he attempted to stop a suspected smuggler, who was trying to evade apprehension in her vehicle. When talking to local media about the rash of similar incidents plaguing his county and department, Sheriff Mark Dannels said, “Just this week alone, I’ve had a patrol car damaged, I’ve had two officers, deputies that were trying to be run over by smuggler drivers. This is every day down here.”
The sheriffs promised that, if the legislature were to appropriate more funds for border security in the next budget, they would use it for “more deputies patrolling the roads, more canine handlers and dogs to sniff out drugs, and better technology to match the wealth and equipment used by the cartels.”
As they ended their letter, the sheriffs added a plea for state leaders to heed their calls, saying, “No amount of state money will allow us to seal the 200-mile-long border to all illegal activity. But by making a small investment, Arizona will at least make a dent while improving the safety of our local communities. As this year demonstrated, our state leaders believe border security through effective law enforcement is worth an investment. We hope you see the wisdom in furthering that financial commitment.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Oct 14, 2023 | Opinion
By the Arizona Free Enterprise Club |
“Don’t California our Arizona.” It’s a saying we’ve had around here for quite some time, and for good reason. Not only is California known for having ridiculously high tax rates, but woke policies in the state have:
- Banned the sale of gas-powered cars by 2035.
- Banned all natural gas appliances (like the gas stove) by 2035.
- Led to an increase in smash-and-grab robberies after Prop 47 more than doubled the felony threshold for petty theft and shoplifting.
- Dramatically increased homelessness despite throwing billions of dollars at the problem.
- Led to rolling blackouts during historic heat.
The list could go on and on. But it’s pretty clear. California’s policies have been a disaster, so much so that the state once ran out of U-Hauls because so many people were leaving. And yet, despite all this, Arizona lawmakers still decided to send your hard-earned dollars to woke Hollywood liberals through a movie tax credit bill last year. And while we hate to say we told you so, that decision now appears to be coming back to haunt Arizonans…
>>> CONTINUE READING >>>
by Daniel Stefanski | Oct 14, 2023 | News
By Daniel Stefanski |
A long-time United States Senator was recently honored by the President and Arizona’s governor.
Late last month, President Joe Biden traveled to Arizona to announce the pending construction of the John S. McCain Education and Community Center.
In his remarks, the president said, “I have come to honor the McCain Institute and Library because they are a home of a proud Republican who put his country first. Our commitment should be no less because democracy should unite all Americans, regardless of political affiliation.”
Biden added, “Our institutions and our democracy are not just of government. The institutions of democracy depend on the Constitution and our character and the habits of our hearts and minds. Institutions like the McCain Institute and the new McCain Library that will be built at Arizona State University with the funding from the American Rescue Plan, which I signed into law when I came to office. A library that’s going to house John’s archives, host dialogue and debate, inspire future leaders around the world, to serve tens of thousands underserved Arizonans as a reminder of our obligation to one another.”
Governor Hobbs was in attendance for the announcement and issued the following statement after the conclusion of the event: “With today’s announcement of the McCain Library, the stories of Senator McCain’s bold defense of Americans’ rights both at home and abroad will become much more than just stories. Everything ranging from advancing human rights, to developing capable leaders, to safeguarding democracy, will run through this center, just as it has run through Arizona. I am proud to make this investment in our state and our community, and I am so looking forward to what we will accomplish together.”
The Governor’s Office shared that “the State of Arizona was instrumental in securing funding for the Library, leading the application through the federal government’s Capital Projects Fund.” The Office also revealed that the new building “included a visitors’ center, conference center, an Arizona home for the Washington, DC-based McCain Institute, and a McCain Library and Archives.”
Arizona State University President Michael Crow said, “John McCain is an important symbol of American democracy, and he holds a special place of respect and appreciation in Arizona and with Arizona State University. We will work with others around the country and in the community to take this unique portion of the ASU Tempe campus and create a place that honors his extraordinary life and legacy, serves the principles he devoted his life and career to, and carries that legacy forward for future generations to learn from.”
According to reports, the library is expected to encompass over 80,000 square feet on a 22-acre property on the sprawling ASU Tempe campus.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Oct 12, 2023 | News
By Daniel Stefanski |
State lawmakers continue to express messages of sympathy and support for Israel, following the unprovoked and shocking terrorist attacks from this past weekend.
This week, many Arizona elected officials added to the bipartisan crescendo of voices in Israel’s corner. On Tuesday, House Speaker Ben Toma issued a statement, saying, “Hamas’ actions amount to terrorism, plain and simple. There is no place for their hateful ideology in any society and their violent actions of anti-Semitism must be stopped. Israel has a right to live in freedom and to defend their land from these barbaric terrorists. We strongly condemn the senseless acts of violence against the people of Israel and support their right to defend themselves. We stand unequivocally with our Israeli brothers and sisters and grieve with those who have lost loved ones to these unprovoked atrocities. May their memories be a blessing and may justice be swiftly delivered.”
State Senator Frank Carroll also put out a statement in support of Israel on Tuesday. He said, “Arizonans should pray for our ally Israel, the lives lost and those in harm’s way. We also need to be vigilant in these trying times. To predict the future, one only needs to understand the past. The 20th century is rich in history about events that led up to the midcentury global conflict. Here we go again. It should be clear where this is heading. God help us.”
In addition to the statements, hundreds of Arizonans, as well as a bipartisan coalition of government officials, attended a Monday night event in Scottsdale to show solidarity for Israel. From that event, Attorney General Kris Mayes posted, “Shoulder-to-shoulder in support of Israel.”
Maricopa County Attorney Rachel Mitchell added, “A very moving event to pray and show support for Israel.”
On Monday night, Governor Katie Hobbs also announced that the Executive Tower was lit ‘blue’ in a demonstration of support for the staunch American ally.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
