Virginia House Bill HB2245

Virginia 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

Va. Free File Program and related agreement with Consortium of Va.; Tax Commission to terminate.

Impact

The enactment of HB 2245 will effectively phase out the Virginia Free File program based on the IRS Free File program established in 2010. Instead, the bill aims for the Tax Commissioner to reinstate the Virginia iFile program or develop a similar service that allows taxpayers to file electronically without any charges. This shift could lead to streamlined tax filing processes for residents, potentially making it easier for individual taxpayers to manage their tax obligations.

Summary

House Bill 2245 proposes significant changes to the state tax services provided to Virginia taxpayers by amending and reenacting §58.1-202.3 of the Code of Virginia. The bill mandates the Tax Commissioner to ensure that all required state tax forms are fillable in a portable document format and available on the Department of Taxation's website. Furthermore, it stipulates the termination of the Virginia Free File program and the preparation for the Commonwealth to offer direct electronic filing services to taxpayers at no cost, starting from January 1, 2024.

Contention

While proponents of HB 2245 may argue for increased efficiency and cost-saving measures for taxpayers, the termination of the Virginia Free File program raises concerns among stakeholders. Critics may view this move as reducing access to free tax filing services for low-income individuals who depend on the existing program. The balance between providing efficient state services and ensuring equitable access for all taxpayers will likely be a point of debate in discussions around the bill.