IRS Direct File

Tax AdministrationEvent2024
RegionUSA
Year2024
TypeTax Administration
CategoryEvent

About IRS Direct File

IRS Direct File launched as a pilot program in 12 states for the 2024 filing season. Direct File is a free government run tax filing system that allows taxpayers with simple returns, primarily W 2 income and standard deduction, to file directly with the IRS online. The pilot was used by approximately 140,000 taxpayers. Surveys showed high satisfaction rates. The Government Accountability Office estimated that Direct File saved users 87 million in tax preparation fees. The tax preparation industry, led by Intuit, lobbied aggressively against Direct File. The future of Direct File depends on IRS funding decisions. The IRS announced in October 2024 that Direct File would be made permanent and expanded to all 50 states for the 2025 filing season, marking the most significant change to US tax filing in decades.

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