IRS plans to test free tax-filing system

May 18, 2023

The IRS is planning to roll out its own free online tax-filing system in a move that could put the agency in direct competition with online tax preparation companies like Turbo Tax and H&R Block.

In a report submitted to Congress on Tuesday, May 16, the IRS said it evaluated the feasibility of providing taxpayers with the option of a free, voluntary, IRS-run electronic filing system called “Direct File.”

The agency said it is taking steps to begin a pilot program for the 2024 filing season following a directive from the Treasury Department.

The IRS already funded a prototype of the system through $15 million from last year’s Inflation Reduction Act, according to a report from The Washington Post. Read more.

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