Is tax collection not a function of the government? I'd rather my taxes fund a free, easy tax filing system than pay fees to rent seeking middle men. Those fees are just an inflated tax by another name. We should be eliminating those kinds of taxes, not entrenching them.
> If they do it in-house, do they even have the expertise?
Government websites and software have a reputation for being ugly, slow, broken and poorly designed. Government is also capable of building good tools. Two organizations that have done good work and could conceivably work with the IRS are:
I'm also pretty sure the IRS has plenty of expertise around the filing of federal tax returns.
> Everyone needs to file state taxes anyway.
I don't see your point? Everyone will continue to file their state taxes separately, electing to use or not use available tools, as they always have.