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Don’t make Tax Day more difficult for small businesses

Julie Pastrick

Having worked with small business owners for nearly 20 years, I know that Tax Day’s challenges are not getting any easier year after year. Each year, millions of families and small businesses save receipts, organize paperwork, race against the clock to file their taxes, and pray they won’t be audited.

But if some Washington politicians get their way, the IRS will soon prepare and file tax returns for taxpayers. If that happens, Tax Day will arguably be more stressful than ever.

As President and CEO of the Greater Flagstaff Chamber of Commerce, I am proud to help advocate for laws and regulations that foster the growth of Flagstaff businesses that create jobs in communities throughout Northern Arizona. As an organization, we also oppose misguided proposals that limit economic opportunities and impose overly burdensome regulations on Arizona’s small businesses. That’s why I’m asking Congress to oppose the government-run tax preparation system.

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As a small business advocate, I know small businesses appreciate having a tax expert in their corner who oversees the financial interests of their business. You sit down with your Certified Public Accountant (CPA) and get questions like, Did you open a new office this year? Have you applied for a small business loan? Did you hire a veteran? These responses determine whether a company is eligible for certain tax credits, deductions, or refunds. The IRS, on the other hand, is responsible for maximizing federal tax revenue. It is clearly a conflict of interest to require government agencies to both benefit taxpayers and maximize tax revenue.

Additionally, the IRS does not have the personal information and data necessary to produce accurate tax returns for most taxpayers. A recent study by the National Bureau of Economic Research found that the IRS could only produce accurate tax returns for her 42-48% of filers. If his success rate in the private sector is less than 50%, he will go bankrupt in less than a year.

Whenever small business owners have tax-related questions, they can call an accountant and get answers in no time. However, the government-run tax preparation system requires the business owner and her family to contact the IRS to answer questions or correct mistakes made by the IRS on her pre-filled return. But in 2021, the IRS said he answered only one of his 50 calls to the agency’s helpline. For small businesses and working families, time is extremely valuable.

No need to wait hours to speak to a human representative or months to receive a refund check. The number of Flagstaff residents living in poverty is higher than his state average of 17%. A recent study found that the IRS is five times more likely to audit low-income households earning less than $25,000 a year. Even Senator Elizabeth Warren (D-Massachusetts), a vocal supporter of the government-run tax preparation system, has told the IRS to “act quickly to end tax investigations of low-income Americans.” I urged you to Ironically, this means that more hardworking Flagstaff residents are more likely to face audits and enforcement action under Senator Warren’s proposal.

Senator Kirsten Cinema (I-AZ) was unafraid to stand up to her own party members and sometimes suffered politically because of her independence. But it’s politically easy to oppose the government-run tax preparation system, as polls have found that 78% of Arizona residents oppose having her tax return prepared and filed by the IRS. is.

As an advocate for the Flagstaff business community here in Arizona, I urge Senator Cinema to continue to represent the best interests of voters and oppose extreme views within the party. Say no to unnecessary government-run tax preparation systems.

Since 2005, Julie Patrick has served as President and CEO of the Greater Flagstaff Chamber of Commerce, representing more than 1,000 member companies in northern Arizona.

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