Published: June 2024

97 organizations sign letter opposing House Majority’s FY25 spending proposal

Nearly a hundred organizations voiced their opposition to the House Majority’s FY25 spending proposal, which would make drastic cuts to the IRS and block implementation of the new Direct File program, which provides a free tax filing option for eligible taxpayers.

Consumer Action was among the nearly 100 organizations signed on to a letter to the House Appropriations Committee expressing strong opposition to the House Majority’s FY25 spending proposal. Under the appropriations bill, the IRS would suffer drastic cuts, which would result in the agency’s new Direct File program being abandoned. Direct file is a free filing option for eligible taxpayers. Piloted during the 2024 tax season, the program proved such a success that it is scheduled for nationwide implementation for the 2025 tax season. It is projected that, at full capacity in a few years, Direct File could save taxpayers $11 billion a year between filing fees and time costs while also helping them access $12 billion in tax credits for families that qualify but are currently missing out. The funding cuts under the bill would also threaten much-needed efforts to modernize the IRS and impede the agency’s ability to ensure that the wealthy and large corporations pay the taxes they legally owe.

Lead Organization

Americans for Tax Fairness

More Information

Read the letter here.

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