There’s no reason private companies should be needed to file income tax returns. The IRS Direct File system will eventually handle all 50 states (they are ~50% there) and all but the most unique tax situations. This is a utility, not a business.
(Cash App is also likely to not survive the FedNow instant payment rollout to all US deposit accounts, tangentially)
I agree, but my point is that a completely free option already exists and TurboTax still costs a bunch of money anyway for the same thing. If you want to remove the wind from TurboTax's sails, and I do, it's been possible nationwide for the past two years.
The US has a two-party system, one of the two parties opposes this,[1] and people prioritize other issues when they vote. Would Direct File even survive a Republican trifecta?
The party that opposes efficient delivery of government services has an electorate that keeps shrinking every year through attrition. Direct File will outlive said party going through a demographic compression.
(Re: your tangent) For a lot of Cash App users, the app is their bank. They're unlikely to switch to a traditional bank just because of FedNow. Cash App will survive. Had FedNow come out a decade ago things might be different.
It's free as long as Cash.app wants to maintain it. I'd rather there'd be no incentive to complicate the tax code such that many people need to hire accountants to figure it out.
It appears you need a smartphone and must download their app for it, although they claim you can then use your computer. That's a non-starter for many people.
https://cash.app/taxes is already free for both federal and state and handled all of my complicated tax needs the past two years.