- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
May not be back for tax year 2024:. I get the feedback from my clients they simply do not want to mess with taxes themselves, free or not.
The IRS said Friday that more than 140,000 taxpayers filed their taxes through its new direct file pilot program and participants saved roughly $5.6 million in fees they would have otherwise spent with commercial tax preparation companies.
The government pilot program, rolled out this tax season in 12 states, allows people with very simple W-2s to calculate and submit their returns directly to the IRS for free. Those using the program claimed more than $90 million in refunds, the IRS said.
But despite what IRS and Treasury Department officials said was a successful rollout, they aren't saying yet whether the program will be available next year for more taxpayers. They say they need to evaluate the data on whether building out the program is feasible.
The program, which became available to the public on March 8, cost roughly $10.5 million for technology and product development and another $2.4 million for customer service, cloud computing and user authentication.
While the Treasury set a goal of reaching 100,000 users for the pilot, 140,803 completed their taxes using the program. More than 3 million people used the IRS' eligibility tracker to see if they could use the program, and 423,450 people logged into the program.
“Regardless of where it goes from here, I am proud of the success of the direct file pilot," Werfel said.
Commercial tax prep companies that have lobbied against development of the free file program say free file options already exist.
Intuit spokesman Rick Heineman said “the reality remains the same today as it did the day Direct File launched; 100% of Americans can already file their taxes completely free of charge, free to the government and actually free to taxpayers.”