The Internal Revenue Service is moving ahead with a plan to build its own free tax filing program, known as Direct File, announcing Tuesday that a pilot version will be available to some taxpayers in 13 states next year.
Armed with an influx of new money approved by Democrats last year, the IRS is conducting a major overhaul of its operations – despite continued threats from Republicans to cut future funding and even abolish the agency altogether.
Eventually, the IRS tax filing system could serve as an alternative to private tax preparation companies like H&R Block and Intuit’s TurboTax.
Who will be eligible for the pilot program
Some taxpayers in Arizona, California, Massachusetts and New York will be eligible for the pilot program during the 2024 tax season that will launch in January. The states have opted to integrate their state taxes with the federal Direct File system.
The Direct File pilot will cover only individual federal tax returns. But once a federal return is filed, taxpayers will be guided to a state-supported tool that they can use to file their state tax return.
Taxpayers in nine other states that do not levy a state income tax – Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – may also be eligible to participate in the pilot.
Man if they get this right it could be huge
Turbo Tax is gonna be pissed. Good, fuck them.
