The IRS is rolling out an innovative pilot program aimed at simplifying the tax filing process for residents in select states.
This new initiative, known as the Direct File pilot test, is designed to make filing federal income taxes free, easy, and accessible. While tax filing season may still be a bit down the road, the IRS is already taking steps to revolutionize the way Americans handle their taxes.
IRS Commissioner’s Endorsement
The Direct File pilot offers taxpayers the option to electronically file their federal tax returns directly with the IRS at no cost. This program will be available for the tax year 2023, and it’s designed to be mobile-friendly and user-friendly, working seamlessly on all devices. The IRS plans to make this option available to hundreds of thousands of taxpayers across multiple states in 2024.
IRS Commissioner Danny Werfel emphasized the importance of this pilot program, stating, “This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS.”
The pilot will also involve collaboration with participating states to test the integration of state taxes, gathering vital information for the future of the Direct File program.
Read more: Maryland Judge Murder Suspect Accused Of Abuse For Stuffing Baby’s Mouth With Towel
Challenges in the US Tax Filing System
Residents in four states have integrated their state taxes into the pilot program, while it is expected that nine more states will follow suit, making the process even more straightforward for eligible taxpayers.
It’s important to note that the trial will specifically cover individual federal tax returns and will be available for simple returns. This means it’s tailored to filers submitting Form 1040 without additional attachments.
In the United States, the cost and complexity of filing federal tax returns have been a longstanding concern.
While the IRS currently offers a Free File Tool Kit for individuals earning $54,000 or less, only a small percentage of eligible filers take advantage of it. Many individuals end up paying private companies to handle their tax returns, with an average cost of $150 in 2021, as reported by Nerdwallet.com.
If the IRS were to make the process free in the future, it could save taxpayers a significant amount of money and make the tax filing process more accessible and efficient. This pilot program marks a promising step toward that goal.
Read more: Top 7 Hacks For More Effective Studying
