IRS Launches Free Direct File Program for Simple Tax Returns in 12 States

The new service aims to simplify tax filing for eligible taxpayers, though concerns about privacy and eligibility restrictions have been raised.

The IRS has launched the Direct File program in California, Arizona, Nevada, and nine other states, offering a free, user-friendly option for filing simple federal tax returns.
Direct File is designed for taxpayers with straightforward income sources and allows for the claiming of a limited range of credits and deductions.
The program is available to all taxpayers in the pilot states, regardless of income, but is not suitable for self-employed individuals, business owners, or those with complex tax situations.
Taxpayers must use the ID.me service for identity verification to access Direct File, raising privacy and security concerns among some critics.
The IRS expects several hundred thousand taxpayers to participate in the Direct File pilot program, which is part of efforts funded by the Inflation Reduction Act to modernize IRS services.