Treasury, IRS roll out new tax filing service

The U.S. Department of the Treasury and Internal Revenue Service (IRS) officially launched its new Direct File Pilot Program after weeks of successful testing.

This new tax filing service, which includes a new Spanish version, provides a free, secure option for taxpayers with simple tax situations to file their taxes directly with the IRS. It is currently available in 12 states.

The Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer. Further, it shows taxpayers the math so they can be sure that their return is accurate, and they are getting the right refund. In addition, live customer service support is available for Direct File users.

The Direct File was made possible by the Inflation Reduction Act, which invested new resources in the IRS to allow the agency to provide better service to taxpayers. This investment will also reduce the deficit by ensuring wealthy individuals, large corporations, and complex partnerships pay taxes owed.

The Treasury Department estimates that one-third of all federal income tax returns filed could be prepared using Direct File. Overall, roughly 19 million taxpayers may be eligible to use the tool this filing season, including 5.2 million in California, 3.8 million in Texas, 2.8 million in New York, 2.4 million in Florida, and 1.1 million in Washington.

Taxpayers who may be eligible to use it include:
• A parent with W-2 income that claims the Earned Income Tax Credit and Child Tax Credit.
• A recent graduate with W-2 income, who pays student loan interest.
• A retired senior citizen with Social Security income.

“Thanks to President Biden’s Inflation Reduction Act, millions of American taxpayers have a free, secure option to file online directly with the IRS for the first time,” Deputy Secretary of the Treasury Wally Adeyemo said. “Direct File ensures taxpayers get their full refund by showing them the numbers and explaining credits they are eligible for. Our priority in launching this new service is to save taxpayers time and money they can spend on themselves and their families.”

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