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Expanded testing and availability for IRS Direct File pilot program.

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IRS Direct File Pilot Expands Testing

TLDR:

  • IRS Direct File free tax preparation system expanding testing in 12 states
  • Direct File to be available 24/7 next week for new users

The Internal Revenue Service is expanding its Direct File free tax preparation system pilot test this tax season in 12 states. The agency plans to offer the service around the clock next week and open it to a larger group of outside testers. The IRS has been providing regular updates on the initiative, which aims to provide a free direct-filing system after a feasibility study mandated by the Inflation Reduction Act. The system is currently available in 12 states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The Direct File pilot remains limited during final testing, with the goal of ensuring that all interested and eligible taxpayers can try out the service for themselves. The IRS also reported an increase in the usage of its Free File Guided Tax Software service this tax season, with nearly 10% more tax returns filed through the program compared to last year. The agency is seeing a strong start to the 2024 filing season, with over 28.9 million refunds issued to taxpayers.

Key Points:

  1. Direct File pilot expanding in 12 states
  2. Free File Guided Tax Software usage up nearly 10%


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