“Direct File worked really well, and it's a great example of how the IRS can do technology, or how the government can do technology, effectively,” said former IRS Commissioner Daniel Werfel.
The U.S. tax code is filled loopholes — credits, write-offs, exceptions and exemptions. This complicated system is costly and time-consuming for taxpayers. And it’s pretty unique to the U.S.
If more undocumented immigrants stop filing and begin working outside of the traditional payroll system, the annual gap between taxes owed and taxes paid could widen.