We’re about to enter tax season and, for once, the roles are reversed. Taxpayers have reason to be happy, while tax prep companies have made it clear they are not pleased.
Why? After years of political wrangling, the IRS announced a Direct File pilot program as an alternative to third parties, like tax software. The new system will allow taxpayers to securely file their taxes directly with the IRS for free.
Of course, tax prep companies aren’t happy. They worry Direct File will hurt their bottom line. They’re characterizing Direct File as too complicated for the IRS to build. One hired 21 new lobbyists to slow down progress by spreading doubts about the government’s abilities.
They are playing into the common misconception that the federal government is bad at technology. The government does make mistakes — it's common to cite the launch of healthcare.gov or the data breach at the Office of Personnel Management — but too many assume that these types of failures are frequent or unique to government.
The vast majority of government technologies work well, if quietly. Planes crisscross the nation safely, GPS guides millions of people, and government data powers our weather apps, just to name a few. Government also operates these technologies at an unmatched scale. For example, Medicare electronically processes $2 billion of medical payments each day (about 3 percent of U.S. GDP).
It’s easy to point to past failures or predict the government will make future mistakes. It will happen. Any new development will encounter technical setbacks, but it’s dishonest not to point out that the government will persevere and restore services. Healthcare.gov was once the pariah of federal IT. Today it is a reliable website that millions of people can count on.
I’m not saying we shouldn’t hold the government to a high standard. In fact, we do. Executive orders on equity and customer service as well as accessibility, privacy and security laws ensure that all members of the public are able to safely access new digital services in language they can understand while respecting their privacy. Public comment requirements and transparency laws hold the government accountable. In the end, the government delivers products with a level of care that the private sector often overlooks. The results may be less flashy than commercial software, but they succeed and they work for everyone.
Higher standards are why we should trust the government to deliver our most critical online services.
During my time as deputy administrator of the United States Digital Service (USDS), my teams helped deliver more than 100 projects across many federal agencies. I can say definitively that the federal government is fully capable of delivering exceptional online public services.
Take the Department of Veterans Affairs. A decade ago, most veterans had to go to their nearest VA office to file paperwork. Few online tools existed and even fewer met veterans’ needs. Only 8 percent of veterans applied for healthcare online. To improve services, we spoke with veterans. We learned what they cared most about. Then, one at a time, we built services that addressed their needs, starting with the healthcare application.
Today, the VA meets 80 percent of veterans’ needs online. A new mobile app makes it even easier (and has more than 100,000 five-star reviews). VA’s dedication to building a better veteran experience has paid off; veteran trust in government has increased by 20 percent.
The Direct File project at the IRS can be just as successful. Recently, the agency released details for the pilot program. A team of talented technologists at IRS, supported by USDS and 18F, are working with modern design and development contractors to build a human-centered tax service.
Direct File is a model for how the government should build software. A limited pilot is a good thing. By rolling out the tool in phases, the IRS is following software development best practices common in industry. The pilot will focus on taxpayers who would benefit the most from the new system. IRS will learn directly from taxpayers and incorporate those lessons into future versions of the software. This approach will lead to a better product for everyone. The limited pilot is a welcome sign that the IRS is building Direct File effectively and responsibly.
Critics will continue to sow doubt between now and the end of tax season, but the IRS has a solid product roadmap and a talented team in place. This won’t guarantee an error-free launch, but it will ultimately lead to a successful product. Maybe the tax prep companies worry because they see that the IRS might build a better product than they do.
Eddie Hartwig served as the deputy administrator at the United States Digital Service (USDS) from 2017 to 2022. He is currently a founding partner at Service Design Collective, a Washington, D.C.-based consultancy and public benefit corporation. He has advised three U.S. presidential administrations.
IRS Direct File will be a win for taxpayers
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25.02.2024
We’re about to enter tax season and, for once, the roles are reversed. Taxpayers have reason to be happy, while tax prep companies have made it clear they are not pleased.
Why? After years of political wrangling, the IRS announced a Direct File pilot program as an alternative to third parties, like tax software. The new system will allow taxpayers to securely file their taxes directly with the IRS for free.
Of course, tax prep companies aren’t happy. They worry Direct File will hurt their bottom line. They’re characterizing Direct File as too complicated for the IRS to build. One hired 21 new lobbyists to slow down progress by spreading doubts about the government’s abilities.
They are playing into the common misconception that the federal government is bad at technology. The government does make mistakes — it's common to cite the launch of healthcare.gov or the data breach at the Office of Personnel Management — but too many assume that these types of failures are frequent or unique to government.
The vast majority of government technologies work well, if quietly. Planes crisscross the nation safely, GPS guides millions of people, and government data powers our weather apps, just to name a few. Government also........
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