IRS unveils new direct tax filing program ahead of tax season

(NBC, KYMA/KECY) - The Internal Revenue Service (IRS) is now accepting 2023 tax returns, and for the first time, some filers in 12 states are using a new Direct File pilot program offered by the agency to prepare those taxes.

It's that time of year. The Inflation Reducation Act required the IRS to look at creating a free direct e-filing service to taxpayers.

"Then, one of the findings in the report itself was that taxpayers who would be more interested in using something like direct file if it allowed them to seamlessly file both their federal and state returns. So, one of the things that we are testing in this pilot is the ability to do just that"

Bridget Roberts, IRS Direct File Program Lead

The IRS is piloting its Direct File Program in 12 states, including Arizona, California and Nevada.

Step-by-step

A survey found more than two-thirds of taxpayers would be interested.

"I think it'd be great if there was like a direct you didn't have to go through like a third party, you know, because paying it to the government anyways, it makes sense to just like do it through them."

Emily Chappel, a resident of Reno

The program offers a step-by-step guide to help taxpayers file their taxes by asking questions about their income and tax situations. If successful, Direct File has the potential to rival other tax filing services.

"Just to kind of wonder about some of these places that do it for you charge exorbitant amounts of money?" asked Michael Judd, a resident of Sparks.

By mid-March, the IRS hopes to expand Direct File, opening it to some private sector workers who have certain income and tax situations supported by the tool.

The program is being rolled out in phases, and will only be available to eligible participants in 12 states initially.