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IRS Direct File Pilot Saves $5.6 Million in Fees for Taxpayers

The IRS Direct File pilot program successfully processed over 140,000 returns, hinting at potential expansion despite uncertainty about its future.

The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. The IRS said Friday, April 26, 2024, more than 140,000 taxpayers filed their taxes through its new direct file pilot program. It says the program's users claimed more than $90 million in refunds, saving roughly $5.6 million in fees they would have spent with commercial tax preparation companies. (AP Photo/Jon Elswick, File)
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Overview

  • The IRS Direct File pilot was launched in 12 states, allowing taxpayers with simple tax situations to file for free.
  • Participants saved an estimated $5.6 million in fees that would have been paid to commercial tax services.
  • High satisfaction reported among users, with 90% rating their experience as excellent.
  • The program's future remains undecided as the IRS gathers data and stakeholder feedback.
  • A detailed report on the pilot is expected soon, which will provide more insights into its performance and potential scalability.