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  • Axios Richmond

    State Democrats push for free tax filing in Virginia

    By Karri Peifer,

    5 hours ago

    Members of Virginia's congressional delegation are calling on Gov. Youngkin to support an expansion of an IRS program that would let Virginians file their federal taxes for free.

    Why it matters: A 12-state pilot of the IRS' Direct File program that launched this tax season had overwhelmingly positive reviews and saved participants millions in filing fees, Axios' Emily Peck reported .


    • Now, all 50 states are invited to participate in an expanded program for next tax season.

    The big picture: In a letter sent to Youngkin last week, Virginia's congressional Democrats urged the governor to work with the General Assembly and federal officials to bring the free file program to the state, Radio IQ reports .

    • To participate, states have to create their own online platform for state returns that links to the Direct File website, which would require state government approval, per the Washington Post .
    • Virginia's Democratic-controlled legislature is likely to support the effort, Radio IQ notes.
    • Opting in could save Virginia taxpayers $200 million a year in filing fees, according to estimates from the progressive leaning Economic Security Project .

    Yes, but: Not everyone is a fan of the new program. Opponents argue that it could be costly for states to implement, confuse tax filers and threatens livelihoods of tax preparers.

    • Republican attorneys general in 12 states, including Virginia, sent a letter to the Treasury Secretary in January opposing the Direct File program, Virginia Mercury reported .

    What's next: Youngkin is "closely following the implementation of the IRS Direct File program and looking into its legal and technological implications," his office told Radio IQ.

    Go deeper: IRS opening free online tax filing program to all states .

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