IRS to launch free US direct tax filing pilot program in 2024

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IRS to launch free US direct tax filing pilot program in 2024
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The IRS said it would launch a free, government-provided direct tax filing option next year, which could lead to the full-scale launch of an IRS filing system that would compete with private tax preparers.

The IRS said in an exploratory report to Congress on the issue that a majority of American taxpayers have indicated in surveys and in other research that they are interested in using a free government-provided tool to electronically file their tax returns.

The size, scope and complexity of the IRS pilot program, to be available in the 2024 tax filing season, has yet to be determined, IRS Commissioner Danny Werfel told reporters, adding that U.S. Treasury Secretary Janet Yellen directed IRS to launch the pilot after reviewing the report. Plans for a free-filing system have been criticized by Republicans in Congress as redundant because of free filing options for simple returns provided by private firms, including H&R Block and TurboTax software maker Intuit. They have also questioned whether it would have an inherent bias against taxpayers as the IRS would be acting as both tax preparer and collector.

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