The Internal Revenue Service (IRS) has made a really important announcement for taxpayers in the United States. After the good results of the pilot program, Direct File becomes a permanent option for American taxpayers who want to make use of it when they file their tax returns.
Therefore, the IRS will expand access to more taxpayers. Bear in mind that access was limited to a small number of States and it was gradual. In this way, they could see how to improve the pilot Direct File from the outset.
WHAT IS DIRECT FILE FROM THE IRS?
Some taxpayers were not eligible for Direct File. Thus, they may still don’t know what Direct File is. For your information, Direct File is a program or tool to help you prepare your taxes and file your federal income tax return.
Direct File is free, so you will need no money extra at all to use it. In this way, you could save money on tax preparers. Keep in mind that you file directly through the Internal Revenue Service.
Somehow, it may remind you of commercial tax software. Direct Files asks questions to taxpayers as if it were an interview. By doing so, taxpayers can give the IRS the information it needs to complete their returns.
WHY HAS THE IRS DECIDED TO MAKE “DIRECT FILE” PERMANENT?
The main reason why the Internal Revenue Service is making Direct File permanent is its great success. The good feedback from many partners has encouraged the IRS to carry out this task.
Now, the IRS will have to face the challenge of find ways to make Direct File accessible to more taxpayers. Therefore, they may need the help of States to make it possible.
Undoubtedly, there will be several updates before the 2025 tax season comes. As a matter of fact, only 140,803 taxpayers have taken part in this pilot program in just 12 States.