IRS Launches Direct File Pilot Program for 2024 Tax Season

The new initiative, available in 12 states, allows taxpayers to submit their returns directly to the government, bypassing commercial tax preparation software.

The IRS is piloting a new Direct File program that allows taxpayers to calculate and submit their returns directly to the government, without using commercial tax preparation software. The program is initially available to certain government employees, with plans to expand to additional taxpayers in February and March.
The Direct File program is designed to be simple and user-friendly, providing a step-by-step walkthrough of easy-to-answer questions. It is primarily targeted at low- and middle-income earners who typically claim a standard deduction.
The pilot program is available to taxpayers in 12 states, including four that have a state income tax: Arizona, Massachusetts, California, and New York. In these states, tax agencies will assist people in directly filing their state taxes.
IRS Commissioner Danny Werfel emphasized that the pilot is undergoing continuous testing to identify and resolve issues. The IRS hopes to use the limited pilot to gather information to guide the future direction of the program.
Despite the potential benefits of the Direct File program, it has faced criticism from commercial tax preparation software companies. Intuit spokesperson Tania Mercado argued that the program could waste billions of taxpayer dollars, as free tax preparation options are already available.