The Internal Revenue Service is introducing a free option for filing federal tax returns this year to residents from 12 states.
The agency recently released details about its plan to trial an in-house filing system, allowing taxpayers from eligible states to submit their federal tax returns directly to the IRS online at no cost, if they meet specific criteria.
Danny Werfel, the agency’s commissioner, stated, “This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the I.R.S.”
According to Intuit spokeswoman Tania Mercado, the direct file project was criticized as a “half-baked solution” and a waste of taxpayer money. Democrats generally support free, direct filing, while Republicans are opposed, claiming it would give the IRS more power over taxpayers.
The direct filing pilot will be available to low- and moderate-income taxpayers with simple returns. For instance, filers must take the standard deduction and have limited income for eligibility. Gig workers are not eligible to participate.
