Latest news with #DirectFile
Forbes
2 days ago
- Business
- Forbes
Peeking Behind The Code—IRS Just Open-Sourced Direct File
WASHINGTON, DC - FEBRUARY 13: A sign for the Internal Revenue Service (IRS) is seen outside its ... More building on February 13, 2025 in Washington, DC. Members of Elon Musk's Department of Government Efficiency (DOGE) arrived at the Internal Revenue Service to begin examining the agency's operations. (Photo by) You would be excused if you didn't notice, as it was not widely reported—but the IRS just open-sourced Direct File—more specifically, it released the codebase underlying the free filing program on GitHub. It isn't every day that the IRS drops something that reads like a blend of legal code, logic theory, and open government idealism. But that is exactly what it did, laying Direct File bare—and releasing it into the public domain—for the world to scrutinize, fork, or admire in stunned silence. At the heart of this code disclosure is something called the Fact Graph, a dry name for a tool that is quietly revolutionary: a logic engine that parses ambiguous tax scenarios and infers relationships while consistently applying tax rules. In a world where the tax code is a labyrinth and the software undergirding governmental operations usually obscures more than it ever reveals, the IRS has done something rare—it has made (at least a portion of) its logic visible. That transparency, more than any refund or deadline extension, might be the most transformative thing the agency has done in years—and with Direct File on the ropes, it may be the project's enduring legacy. Technically, Fact Graph is a declarative system written in XML and Scala, designed to represent relationships between discrete data points—like income types, deduction criteria, and filing status—in a way that broadly mimics logical reasoning. It is, at base, something of a rules engine that reasons through ambiguity. From a cursory review of the code, it appears that if a taxpayer says they had self-employment income but neglects to refer to any business expenses, the Fact Graph will flag the missing piece, evaluate what it knows already about the filer, and suggest a path forward. What makes this novel, as against for-profit tax prep software, is that the rules aren't buried in opaque code or obscured behind paywalls—it is all open and available to be built upon. The system models tax law as less of a linear checklist and more of a web of interrelated and conditional facts. Fewer hard-coded assumptions, allowing the program to evaluate what information from the taxpayer is missing and what might be contradictory. This all matters in an age when public trust in institutions is frayed and when algorithms, or artificial intelligence (AI), increasingly mediates our rights and obligations. If the tax code is going to be enforced by machines, and the preparation calculated and handled by the same, the rules those machines follow should be legible and contestable. The open-sourcing of Direct File hints at a future where regulatory logic and automated decision-making isn't hidden, but published like case law—reviewable, revisable, and maybe even improved by the very public it serves. Of course, publishing a bunch of code doesn't solve everything. Direct File is still limited in scope, and may be on its way out, casting taxpayers back into the jungle of for-profit tax preparation software. The Fact Graph doesn't eliminate the complexity of the tax code, but it makes it more legible. By turning the machinery of tax enforcement into something transparent and inspectable, the IRS has—without fanfare—laid a foundation that could extend far beyond the next filing season. State tax agencies, benefit programs, and even AI driven rulemaking efforts by governments could adopt similar approaches—building systems where the logic is not just executed but actively exposed and subject to scrutiny. The IRS just open-sourced its tax preparation brain, maybe the rest of government should consider following suit.
Yahoo
2 days ago
- Business
- Yahoo
Doge employees hold stock in firms set to benefit from cuts, Democrats allege
Employees of Elon Musk's 'department of government efficiency' (Doge) own lucrative stock in companies that stand to directly benefit from their work gutting federal agencies, Democratic senators have alleged. The potential ethics violations merit an investigation by the justice department and other oversight bodies, urges a letter co-authored by senators Elizabeth Warren of Massachusetts, Ron Wyden of Oregon and Jack Reed of Rhode Island and obtained by the Guardian. 'We write regarding new reports that Doge employees at the treasury, Internal Revenue Service (IRS), and the Consumer Financial Protection Bureau (CFPB) have been engaged in the dismantling of these agencies while holding hundreds of thousands of dollars of stock in private companies benefitting from these individuals' efforts to eliminate key programs, staff, and policies,' the senators state. Doge was launched in January with a mission to cut wasteful spending, slash federal regulations and improve government software and IT systems. It has about 79 appointed employees and 10 seconded from other agencies. Many are young software engineers who worked for Musk's companies and have no prior government experience. Recent media reports have alleged that their actions aligned with the financial interests of the companies in which they held stock. This could constitute violations of an ethics law that prohibits federal employees from participating in matters in which they have a personal financial interest. A wilful violation of this law carries penalties including fines and imprisonment. Warren and her Senate colleagues argue: 'This poses a clear conflict of interest and potential criminal violation of federal ethics law, which bars any federal government employee from participat[ing] personally and substantially … [in any] particular matter in which [they] … ha[ve] a financial interest.' The letter – addressed to Pam Bondi, the attorney general, as well as Jamieson Greer, the acting director of the Office of Government Ethics, and inspectors general within the treasury, IRS and Federal Reserve – details three specific cases. Tom Krause, the Doge team leader at Treasury, reportedly holds substantial stock in major financial institutions – including JPMorgan Chase and Bank of America – that do business with or provide services to Treasury. He also owns shares in the tech giants Google, Oracle and Amazon while leading treasury's IT modernisation efforts. A government ethics expert described this to Politico as 'a massive, glaring red flag of a conflict of interest'. Krause, Todd Newnam and Linda Whitridge of the treasury Doge team reportedly own shares in Intuit (parent of TurboTax), a company actively opposing the IRS's free tax filing programme Direct File. The letter notes that Musk had previously claimed to have 'deleted' a team involved in Direct File development. The senators find it 'deeply disturbing if Doge employees with a financial stake in Intuit were involved with overseeing and dismantling the Direct File initiative'. Related: Elon Musk announces exit from US government role after breaking with Trump on tax bill ProPublica reported that Gavin Kliger, a CFPB Doge aide, was warned by ethics lawyers against holding stock in companies forbidden by the CFPB, such as Apple, Tesla, Alphabet and cryptocurrencies, since they are subject to CFPB examination. Yet he reportedly take part in mass layoffs at the agency, including the ethics lawyers who warned him. The letter notes that 'a defanged and downsized consumer watchdog is unlikely to aggressively regulate those and other companies, freeing them of compliance costs and the risk associated with examinations and enforcement actions. That in turn could boost their stock prices and benefit … Kliger.' An expert is quoted as describing Kliger's actions as 'look[ing] like a pretty clear-cut violation' of the federal criminal conflict-of-interest statute. The senators argue that these cases suggest a widespread issue within Doge, where ethics rules are disregarded for personal financial gain, undermining the integrity of government decision-making. 'Together, these three examples underscore what appears to be a pervasive problem with Elon Musk and Doge employees trampling ethics rules and laws to benefit their own pockets at the expense of the American public.' The letter explicitly calls for a broad review by the inspectors general regarding 'illegal or inappropriate efforts' and an investigation by the justice department into whether 'these and other Doge representatives may have violated federal ethics law by abusing their official roles for the benefit of private companies in which they have a vested financial interest'.
American Military News
3 days ago
- Business
- American Military News
IRS Direct File will be cancelled if Republican tax bill becomes law
The $3.8 trillion Republican tax bill that just passed the House includes a provision to kill off the popular IRS Direct File program, which lets people file their federal income tax returns for free online. The bill still needs to pass the Senate to become law, but if the bill is enacted as currently written, the Direct File program is slated to be eliminated within 30 days of the law's passage. The bill also requires the U.S. Treasury Department to create a task force to design a partnership between the IRS and private-sector tax service providers. The task force would need to identify ways to replace any 'free file programs and direct e-file tax return systems.' That includes the IRS Free File program, an existing public-private partnership. IRS Direct File, which is separate from the Free File program, is a popular free option that offers guidance and support as you fill out your federal income tax return and file your taxes directly with the IRS. Most taxpayers have rated the Direct File program positively: About 90% of taxpayers said their experience was excellent or above average, according to a survey by the General Services Administration of about 11,000 Direct File users in 2024. On top of that, interest in the program is clear: About 73% of taxpayers said they'd be somewhat or very interested in using Direct File, according to a Tax Policy Center report in March, based on a survey of taxpayers aged 18 to 64. The Direct File program has been in Republican lawmakers' crosshairs for a while. In December, almost 30 Republican lawmakers sent a letter to President-elect Donald Trump, calling for him to end the Direct File program on his first day in office. Lawmakers in the U.S. House of Representatives introduced legislation last July to end the Direct File program. Elon Musk, de facto head of the 'Department of Government Efficiency,' or DOGE — also isn't a fan of the program. In February, he posted on social media that the government tech office that developed the Direct File program had been 'deleted.' Currently, the IRS's Direct File page is still up and running. Direct File doubled its reach to 25 states for the 2025 tax season, up from 12 states in 2024, the program's pilot year. An estimated 30 million taxpayers qualify for the Direct File program in 2025, the IRS says. More than 140,000 taxpayers filed their federal tax returns through the Direct File program in 2024. The Direct File program also expanded to accept more types of tax situations for the 2025 tax season. While taxpayers who used the system in 2024 could claim a handful of tax credits, including the earned income tax credit and the child tax credit, that list expanded for this filing season to include the child and dependent care credit, among others. However, taxpayers who want to claim other tax credits, such as the American Opportunity Tax Credit for higher education costs, or the tax credit for the costs of adopting a child, won't qualify for Direct File. And if you're hoping to deduct IRA contributions, Direct File doesn't support that. (See the full list of credits and deductions supported by Direct File on this IRS page.) The Direct File program, now in its second year, allows taxpayers to file their federal tax returns electronically with the IRS. The no-cost tool guides taxpayers through every part of their federal income tax return. Taxpayers can file using a smartphone, computer or tablet. One of the program's advantages is that, if you have questions as you're working on your return, you can get live support directly from the IRS via chat or phone. IRS representatives can answer basic tax questions and help with technical issues in English and Spanish. The Direct File program has income limits, as well as limits on the types of income, deductions and credits you can enter on your tax return. For the 2025 tax season: —Your income must be less than $200,000 (less than $168,600 if you have more than one employer), and if you're married filing jointly, your spouse's income also must fall below these limits. —If you're married filing jointly, your combined income must be less than $250,000. —If you're married and file separately from your spouse, your income must be less than $125,000. To be eligible for Direct File, your income can come from the following sources: —W-2 wages —Social Security income —Unemployment compensation —Interest income —Retirement income (reported on a 1099-R — limited eligibility starts March 2025) But if you're self-employed, or have business or rental income, you can't use Direct File. Same goes for IRA contributions or distributions: If you have either, you can't use Direct File. You can use the IRS Direct File program only if you claim the standard deduction — the program isn't available to people who itemize. But you can claim certain above-the-line deductions: student loan interest, educator expenses and health savings account contributions. You can't use Direct File if you want to deduct your IRA contributions. The Direct File program supports the following tax credits in 2025: —Earned income tax credit —Child tax credit —Credit for other dependents —Child and dependent care credit —Premium tax credit —Credit for the elderly or disabled —Retirement savings contribution credit However, if you want to claim education credits, credits for energy efficient home upgrades or the adoption expense credit, you can't use the Direct File program. More taxpayers will have access to the IRS Direct File program in 2025. In 2024, the IRS kicked off the program with only 12 states; that number has expanded to 25 states for the 2025 tax season. For some of the states that participate in the IRS Direct File program, your federal return information will be transferred automatically to the state tax website, but in some cases you'll have to re-enter your information. Visit this IRS Direct File page to get the details for your state. Here is a list of the participating states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming If you don't qualify for the IRS Direct File program, you may have other options to file your tax return for free. In addition to Direct File, the IRS offers the Free File program, in which it partners with online tax software providers to provide free federal income tax return filing. Some providers also allow you to file a state income tax return. For the 2025 tax season, your adjusted gross income must be $84,000 or less to qualify for the Free File program. That AGI applies to any filing status: married filing jointly, single, head of household, etc. The IRS also offers the Volunteer Income Tax Assistance (VITA) program, which provides certified volunteers to prepare basic tax returns if you earn less than $67,000 a year, are disabled, or speak limited English. You can find a site near you by visiting this IRS page. ___ © 2025 Distributed by Tribune Content Agency, LLC.
4 days ago
- Politics
Fired federal tech staffers file retaliation claim to a panel whose chairwoman Trump also fired
WASHINGTON -- A group of roughly 80 fired federal employees on Wednesday appealed their terminations to an administrative body in charge of protecting the rights of federal employees from partisan political practices. Notably, that board's chairwoman was also recently fired by President Donald Trump. The 18F employees, who worked on technology projects such as the IRS' Direct File, filed an appeal at the Merit Systems Protection Board against the General Services Administration and Elon Musk's Department of Government Efficiency. They claim they were identified in February for a reduction-in-force because of their 'perceived political affiliations or beliefs,' as well as 'protected speech and actions supporting diversity, equity, and inclusion, and actions to resist and blow the whistle on management's improper handling and transition of control concerning sensitive data and systems.' In February, billionaire tech mogul Elon Musk posted on his social media site that he had 'deleted' 18F. Musk was responding to a post by an X user who called 18F 'far left' and mused that Direct File 'puts the government in charge' of preparing people's taxes. 'That group has been deleted,' Musk wrote. The appeal documents state that the employees were removed from federal service 'through a purported RIF because they were perceived to be left-wing, radical, or affiliated with DEI activities," which "abuses the laws and regulations governing RIFs to punish perceived political opponents and to coerce conformity with their values and political positions, and violates federal civil rights statutes.' One of the MSPB's primary functions is to protect federal workers against partisan politics and other prohibited personnel practices by adjudicating employee appeals, according to the board's website. The workers' complaint comes after the Supreme Court cleared the way for Trump to fire the head of the board, Cathy Harris, while a lawsuit plays out. According to the MSPB website, as of April 9, Acting Chairman Henry Kerner is the sole serving board member, and the board is currently without a quorum to vote on petitions for review.
Yahoo
4 days ago
- Business
- Yahoo
Fired federal tech staffers file retaliation claim to a panel whose chairwoman Trump also fired
WASHINGTON (AP) — A group of roughly 80 fired federal employees on Wednesday appealed their terminations to an administrative body in charge of protecting the rights of federal employees from partisan political practices. Notably, that board's chairwoman was also recently fired by President Donald Trump. The 18F employees, who worked on technology projects such as the IRS' Direct File, filed an appeal at the Merit Systems Protection Board against the General Services Administration and Elon Musk's Department of Government Efficiency. They claim they were identified in February for a reduction-in-force because of their 'perceived political affiliations or beliefs,' as well as 'protected speech and actions supporting diversity, equity, and inclusion, and actions to resist and blow the whistle on management's improper handling and transition of control concerning sensitive data and systems.' In February, billionaire tech mogul Elon Musk posted on his social media site that he had 'deleted' 18F. Musk was responding to a post by an X user who called 18F 'far left' and mused that Direct File 'puts the government in charge' of preparing people's taxes. 'That group has been deleted,' Musk wrote. The appeal documents state that the employees were removed from federal service 'through a purported RIF because they were perceived to be left-wing, radical, or affiliated with DEI activities," which "abuses the laws and regulations governing RIFs to punish perceived political opponents and to coerce conformity with their values and political positions, and violates federal civil rights statutes.' One of the MSPB's primary functions is to protect federal workers against partisan politics and other prohibited personnel practices by adjudicating employee appeals, according to the board's website. The workers' complaint comes after the Supreme Court cleared the way for Trump to fire the head of the board, Cathy Harris, while a lawsuit plays out. According to the MSPB website, as of April 9, Acting Chairman Henry Kerner is the sole serving board member, and the board is currently without a quorum to vote on petitions for review. A White House official did not respond to an Associated Press request for comment.
