Accounting
IRS sees steady growth in Direct File free tax program
The Treasury Department reported increasing usage of the Internal Revenue Service’s free Direct File tax-filing system that they’ve been pilot testing in a dozen states this tax season.
“In the three weeks since IRS Direct File launched, we’ve seen steadily increasing interest from taxpayers in using this new free tool,” said a Treasury official in an email Friday afternoon. “In each week since Direct File launched, we’ve seen growth over the previous week. Sunday, March 31, was our best day ever for Direct File usage, until Monday, April 1, which far surpassed it — setting new records for visitors to Direct File, new users, and returns accepted. As more people hear about Direct File, more people are eager to use it to file their taxes.”
The IRS
So far, according to the Treasury, taxpayers using Direct File have claimed more than $30 million in refunds and saved millions in estimated filing fees. California, Texas, Florida and New York have the highest number of accepted returns to date.
Since the launch of Direct File on March 12, taxpayers have used the live customer support available nearly 14,000 times, with average wait times for assistance consistently ranging between 10 and 20 seconds and less than a minute during peak use.
The Treasury and the IRS have also been surveying users of Direct File, and so far the response from taxpayers has been overwhelmingly strong, according to the Treasury.
“When given the opportunity, taxpayers want to tell the IRS about their experience with Direct File,” said the Treasury official.
However, the tax software industry has not been pleased by the program, and some lawmakers in Congress have also been pushing back.
“Direct File is not free tax preparation, but rather a thinly veiled scheme where billions of taxpayer dollars will be unnecessarily used to pay for something already completely free of charge today,” said Intuit spokesperson Tania Mercado in an email last month. “Today 100% of Americans — regardless of their income level or tax complexity — can file their federal and state taxes completely free of charge. Whether people are simple filers like those eligible for IRS Direct File, or complex filers with gig work and investments that IRS Direct File excludes, there is a filing option available today so every American can easily and accurately file their taxes with confidence.” The TurboTax maker also posted a
House Ways and Means Committee Chairman
The American Coalition for Taxpayer Rights, a group of tax prep companies that has been lobbying against Direct File, pointed out Monday that the IRS and the Treasury have downgraded their goals for the program. They noted that an estimated 19 million Americans were supposed to be eligible for direct file,
DSB Rock Island merges with fellow Minnesota firm Meuwissen, Flygare, Kadrlik and Associates; Smith + Howard adds Richmond-based consultancy Fahrenheit Advisors; Reynolds, Bone & Griesbeck adds fellow Memphis firm Scott and Pohlman; and GBQ expands its credit union practice with Lillie & Co.
AI-specialized accounting platform company
“We’re putting every dollar back into the platform and team – to invest in ML research, to continue to bring the most cutting-edge AI to accounting firms, and to open additional slots for firms,” said Matt Harpe, Basis co-founder, in an email.
Basis, which emerged from stealth
“This technology is a new paradigm for accounting. Learning to work with your computer, not just on it, might be an even bigger shift than going from paper to digital. Over the last year, as accountants have experienced what’s possible with the most cutting-edge AI, we’ve seen more and more firms decide that AI must become the top strategic priority. We’re excited to continue to equip firms with AI that actually works,” said Mitch Troyanovsky, Basis co-founder in an email.
Basis sells exclusively to accountants versus selling directly to businesses or building ‘new’ accounting firms, and is tailored specifically for use by expert accountants. Basis focuses on building agents that understand, and can operate on, accounting broadly instead of isolating only a specific task. This allows Basis to work across clients and workflows without losing context, and to quickly take on new workflows, said Basis. Accountants onboard Basis to engagements and assign it core workflows for one-time or ongoing execution
“Accounting is a massive industry, and Basis is clearly leading on the AI side. This is one of the few AI agents that’s already deployed and working. Matt and Mitch have put together the best NYC team in the applied AI space,” said Vinod Khosla, founder of Khosla Ventures, who also co-founded Sun Microsystems.
Platform Accounting Group has added two more accounting firms, based in Indiana and Illinois, bringing the total firms that have joined the Utah-based company this year to 12.
Platform Accounting Group, founded in 2015, invests in and acquires small accounting firms, and announced it
Midwest Advisors, formerly known as Philip+Rae & Associates, is headquartered in Naperville, Illinois, and has provided fractional CFO roles, controllership and back-office accounting operations for more than 30 years. Additionally, the firm offers tax preparation, accounting and auditing, financial planning, estate planning, payroll services, small business consulting, bookkeeping, back-office accounting, small business consulting and more.
In operation for 30 years, Indianapolis-based Crossroads Advisors, formerly Peachin Schwartz + Weingardt, serves high-net-worth individuals, closely-held businesses and not-for-profit organizations. The firm supports clients throughout their life cycle, from the startup phase to mature businesses seeking an exit or succession strategy.
“Because of my experience and time there, I deeply value the tight-knit community and small-town feel of the Midwest,” said Reyes Florez, CEO of Platform Accounting Group, in a statement. “We are thrilled these firms, who like us, prioritize relationships and roots, are joining our group and will be able to invest even further in their clients and communities.”
Platform Accounting Group has nearly 1,000 employees across 12 states and expects to add a few more accounting firms in January, the company said.
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