{"id":64315,"date":"2024-04-29T14:18:34","date_gmt":"2024-04-29T21:18:34","guid":{"rendered":"https:\/\/lapost.us\/?p=64315"},"modified":"2024-04-29T14:18:34","modified_gmt":"2024-04-29T21:18:34","slug":"direct-file-pilot-officially-closes-after-more-than-140000-taxpayers-successfully-use-direct-e-filing-system-in-12-states-including-integration-with-4-state-tax-systems","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=64315","title":{"rendered":"Direct File pilot officially closes after more than 140,000 taxpayers successfully use direct e-filing system in 12 states, including integration with 4 state tax systems"},"content":{"rendered":"

IR-2024-122, April 26, 2024,\u00a0WASHINGTON<\/strong> \u2013 The Internal Revenue Service announced the closure of the Direct File pilot with several hundred thousand taxpayers across 12 states signing up for Direct File accounts, and 140,803 taxpayers filing their federal tax returns using the new service.<\/p>\n

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By design, the Direct File Pilot started out small, and in mid-March the IRS incrementally ramped up availability of the option. During the final days and weeks of the filing season, there was steadily increasing interest from taxpayers in pilot states using the new tool. By the final week of the filing season, Direct File processed more than 5,000 accepted returns each day, bringing the total number of returns filed to more than 140,000.<\/p>\n

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Overall, for the pilot, leading states with accepted returns included California (33,328), Texas (29,099), Florida (20,840), New York (14,144) and Washington (13,954). Across the 12 pilot states, taxpayers using Direct File claimed more than $90 million in tax refunds and reported $35 million in tax balances due.<\/p>\n

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The IRS saw strong interest in the Direct File option from taxpayers throughout the country. Millions of people \u2013 including many from outside of Direct File\u2019s 12 pilot states \u2013 visited the Direct File website to learn more about the new system. Over the course of the pilot, more than 3.3 million taxpayers started the eligibility checker, 423,450 taxpayers logged into Direct File and 140,803 taxpayers submitted accepted returns. In cases where a user\u2019s tax situation was out of scope of the pilot, they were directed to other options to complete their tax returns, including the separate Free File program that provides free software from the private sector. Overall, usage exceeded IRS expectations for the limited pilot and far exceeded what was necessary to provide sufficient data for the agency to evaluate.<\/p>\n

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\u201cFrom the very beginning of the Direct File pilot, we wanted to test new ways to give taxpayers an easy, accurate and free way to file their taxes online directly with the IRS,\u201d said IRS Commissioner Danny Werfel. \u201cWe saw a strong response from the pilot, and Direct File\u2019s users generally found it fast and easy to use. This is an important part of our effort to meet taxpayers where they are, give them options to interact with the IRS in ways that work for them and help them meet their tax obligations as easily and quickly as possible. We will be reviewing the results of the pilot and gathering feedback to help us determine our future course involving Direct File. We anticipate making an announcement about future plans later this spring.\u201d<\/p>\n

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The Direct File pilot was designed to test the feasibility of building a system to allow taxpayers to file their federal income tax returns directly with the IRS for free. As part of this, the IRS needed to understand how Direct File would complement existing tax filing options, strengthen the tax filing ecosystem and fulfill transformation objectives from the Inflation Reduction Act reflected in the IRS\u2019s Strategic Operating Plan.<\/p>\n

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The agency\u2019s approach to the Direct File pilot revolved around three themes:<\/p>\n

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