The IRS will test its free online tax filing system in 2024

Most taxpayers want to file their taxes directly with the IRS for free, and that option will be tested next year.

The IRS has spent the last nine months investigating whether US taxpayers want the government’s free, government-run electronic filing system — and is now preparing to launch a pilot program.

The prospect of a government-run free online tax filing system has long been debated.Proponents say this option would make tax refund services fairer and more accessible to taxpayers across the country. But there were also objections from some large tax consulting firms. Now the IRS plans to launch a pilot program for the 2024 filing season to test the “direct documentation” system and help the federal government decide whether to proceed with its possible implementation in the future, the IRS commissioner said Danny Werfel and the Treasury Department. Tuesday, Implementation Director Laurel Blatchford.

While the agency is finalizing the basic structure, few details are known about the pilot, but Werfel said the public will also have an opportunity to get involved. The IRS has been tasked with studying how to create a “direct file” system using funds from the Cut Inflation Act, the Democrats’ flagship health and climate measure that President Joe Biden signed into law last summer .He gave the IRS nine months and $15 million to report on how such a program would be implemented.

The IRS released a feasibility report Tuesday outlining taxpayer interest in direct deposits, how the system works, its potential costs, operational challenges, and more.

The report states that the majority of taxpayers surveyed would be interested in using the tool provided by the IRS to prepare and file their taxes electronically – and that the IRS “has the technical ability to provide files directly that would.” however, require resources and additional resources. “The complexity of the operations of the IRS,” Werfel said in a phone conversation with reporters.

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