The Internal Revenue Service (IRS) has announced that it will test a free tax filing service in 2024 for a select group of taxpayers in up to 13 states. The service, called Direct File, is a mobile-friendly, interview-based service that is intended for people with simpler tax situations.
Direct File is a result of funding provided by the 2022 Inflation Reduction Act, which allocated $15 million for the purpose of developing and implementing a free, government-provided tax filing service.
The IRS is still working out some of the details of the program, but it has said that Direct File will be available in English and Spanish and that it will be designed to be easy to use for people with limited tax experience. The agency is also working with several states to integrate Direct File with their state income tax filing systems.
The IRS will initially roll out Direct File to a limited number of taxpayers in Arizona, California, Massachusetts, and New York. Other states that may participate in the program include Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
The IRS says that it will evaluate the costs, benefits, and operational challenges associated with Direct File during the pilot program. The agency also says that it will use feedback from taxpayers to improve the program before it is rolled out to a wider audience.
The sources for this piece include an article in TechCrunch.