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Regulation and Compliance > Federal Regulation > IRS

IRS Launches Direct File

By Melanie Waddell

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The Treasury Department and Internal Revenue Service on Tuesday announced the launch of the Direct File pilot program.

A Spanish version of the free tax filing service is also set be available Tuesday.

Direct File provides a free, secure option for taxpayers with simple tax situations in 12 states to file their taxes directly with the IRS.

“Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer,” Treasury and the IRS said.

Live customer service support is also available for Direct File users.

“Thanks to President Biden’s Inflation Reduction Act, millions of American taxpayers have a free, secure option to file online directly with the IRS for the first time,” Wally Adeyemo, deputy Treasury secretary, said Tuesday in a statement.

“Direct File ensures taxpayers get their full refund by showing them the numbers and explaining credits they are eligible for. Our priority in launching this new service is to save taxpayers time and money they can spend on themselves and their families,” Adeyamo explained.

Sen. Elizabeth Warren, D-Mass., applauded the launch of the program.

“The IRS Direct File is an example of how the Biden administration is cutting junk fees and making government work better for working people,” Warren said Tuesday in a statement. “About a third of taxpayers in Massachusetts can use this free direct file option to file their taxes, and I encourage people to check their eligibility at directfile.IRS.gov.”

The investment “will also reduce the deficit by ensuring wealthy individuals, large corporations, and complex partnerships pay taxes owed,” Treasury and the IRS said.

Treasury on Tuesday is also releasing new state-by-state eligibility estimates.

“While Direct File supports limited tax situations this Filing Season, a large percentage of American taxpayers have simple taxes and may be able to use Direct File,” Treasury and the IRS said.

The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File, and that 19 million taxpayers may be eligible to use the tool this filing season.

This includes:

  • 5.2 million in California;
  • 3.8 million in Texas;
  • 2.8 million in New York;
  • 2.4 million in Florida; and
  • 1.1 million in Washington.

“Thousands of taxpayers across all 12 states have already successfully filed returns during the pilot’s testing phase,” Treasury and the IRS said.

(Credit: Shutterstock)

Melanie Waddell

@Think_MelanieW

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