Current:Home > MarketsIRS to test free tax-filing platform in 13 U.S. states. Here's where.-DB Wealth Institute B2 Expert Reviews
IRS to test free tax-filing platform in 13 U.S. states. Here's where.
View Date:2025-01-14 20:34:22
The IRS said Tuesday it will test a free, electronic tax-filing system early next year in 13 states, with the agency estimating that hundreds of thousands of taxpayers will participate in the limited rollout.
The tax agency earlier this year announced it was developing a free tax-filing tool as a way to save Americans money. Americans spend about $11 billion each year on tax-preparation services, accountants and others to help them fill out their returns.
Here are the first states that will roll out the IRS' direct-filing platform, according to the agency:
- Arizona
- California
- Massachusetts
- New York
Additionally, residents in nine other states that don't have an income tax may be able to participate in the pilot, the IRS said. These states are:
- Alaska
- Florida
- New Hampshire
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
The IRS program stems from last year's Inflation Reduction Act, which directed $80 billion in funding to the agency and tasked the agency with assessing the feasibility of providing a free tax-filing system.
"The plan is to roll it out in increments that get larger and larger, consistent with how products like this are rolled out in the private sector," IRS Commissioner Daniel Werfel said in a call with reporters on the status of the project.
"We want to make sure it is an easy to understand pilot," he added.
In an emailed statement, Intuit, which offers the tax-prep software program TurboTax, called the program "a solution in search of a problem."
"The Direct File scheme will exclude the vast majority of taxpayers who can file their taxes absolutely free of charge today — free for the taxpayers and free for the government," the company added, referring to the Free File program currently offered through a coalition of tax-prep companies.
However, a government report found that while Free File is available to 70% of taxpayers, only 4% used the program annually.
The IRS plans to work with nonprofit groups, congressional offices, states and others to identify taxpayers who are eligible for the pilot program based on the types of income, tax credits and deductions they claim.
Werfel said the trial is meant to be "just another choice taxpayers have" to file their taxes. "Our work to evaluate the feasibility of direct file is just one of many examples of how we're working to transform the IRS."
—With reporting by the Associated Press.
- In:
- IRS
- Taxes
veryGood! (9862)
Related
- CRYPTIFII Introduce
- New Mexico governor amends order suspending right to carry firearms to focus on parks, playgrounds
- United Auto Workers go on strike against Ford, GM, Stellantis
- Afghan NGO says it’s working with the UN for the quick release of 18 staff detained by the Taliban
- Tennessee suspect in dozens of rapes is convicted of producing images of child sex abuse
- Spanish judge hears allegations of Franco-era police torture in a case rights groups say is a 1st
- Deadly floatplane crash rushes bystanders into action
- Fernando Botero, Colombian artist famous for rotund and oversize figures, dies at 91
- 'Cowboy Carter' collaborators to be first country artists to perform at Rolling Loud
- Ashton Kutcher resigns as chair of anti-sex abuse organization after Danny Masterson letter
Ranking
- Roy Haynes, Grammy-winning jazz drummer, dies at 99: Reports
- TikTok is hit with $368 million fine under Europe’s strict data privacy rules
- Watch SpaceX launch live: Liftoff set for Friday evening at Florida's Cape Canaveral
- Flights canceled and cruise itineraries changed as Hurricane Lee heads to New England and Canada
- Tom Brady Admits He Screwed Up as a Dad to Kids With Bridget Moynahan and Gisele Bündchen
- Ovidio Guzman Lopez, son of El Chapo, brought to US: Sources
- U.S. judge orders Argentina to pay $16 billion for expropriation of YPF oil company
- See Sofía Vergara's transformation into Griselda Blanco for new Netflix series: Photos
Recommendation
-
RHOBH's Kyle Richards Shares Reaction to BFF Teddi Mellencamp's Divorce
-
Steve Harvey Defends Wife Marjorie Against Claims She Broke Up His Prior Marriage
-
Ketanji Brown Jackson warns nation to confront history at church bombing anniversary event
-
1 dead, 8 in intensive care after botulism outbreak at bar in France
-
Britney Spears Reunites With Son Jayden Federline After His Move to Hawaii
-
6 people accused of torturing, killing woman lured into religious group
-
How indigo, a largely forgotten crop, brings together South Carolina's past and present
-
Who's the murderer in 'A Haunting in Venice?' The biggest changes between the book and movie