IRS to Launch Free E-Filing Pilot Program in 2024

IRS to Launch Free , E-Filing Pilot Program in 2024.

The IRS made the announcement on May 16 as it released a study, which was required by the Inflation Reduction Act, exploring the impact of a free e-filing system.

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The IRS was given $15 million to assemble a task force and conduct the study.

According to various surveys, "72% of taxpayers would be interested" in a free e-filing system provided by the IRS, CNN reports.

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The report shows that a majority of taxpayers are interested in using an IRS-provided tool to prepare and file their taxes, Danny Werfel, IRS Commissioner, via statement.

It also shows that the IRS is technically capable of delivering Direct File, but that doing so would require additional resources and add complexity to IRS operations, Danny Werfel, IRS Commissioner, via statement.

The agency's report indicates that the program could cost the IRS $64 million to $249 million each year.

The IRS has yet to determine pilot program eligibility requirements.

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Once the pilot program is over, the Treasury Department will decide whether to implement a larger-scale program.

The pilot program arrives as private tax-filing companies have come under fire for making it difficult to access their free options.

TurboTax is currently sending settlement checks to 4.4 million people for deceiving taxpayers into paying to do their taxes