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U.S. NEWS Wednesday 17 May 2023

RS moves forward with free e-filing system in 2024

President Joe Biden signed plexity to IRS operations,”
last summer. It gave the Werfel said on a call with
IRS nine months and $15 reporters.
million to report on how The IRS’s existing free e-
such a program would be file option, available to
implemented. lower income taxpayers
The IRS published a feasibil- who qualify, will remain in
ity report Tuesday which place, he added. Individu-
lays out taxpayer interest in als of all income levels can
direct file, how the system also still submit their returns
could work, its potential for free via the mail — al-
cost, operational challeng- though it can take months
es and more. to process paper returns
The report shows that the and taxpayers will still have
majority of surveyed tax- to buy postage.
payers would be interest- The new, direct e-file pro-
ed in using an IRS-provided gram being tested “could
tool to prepare and file potentially save taxpayers
their taxes electronically billions of dollars annually,”
and that the IRS is “techni- said Blatchford, who noted
cally capable of deliver- that an individual taxpayer
ing direct file, but doing so pays an average of $140
The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. would require additional preparing their tax returns
Associated Press resources and add com- each year.q

IBy WYATTE GRANTHAM- to launch a pilot program
PHILIPS and FATIMA HUS- for the 2024 filing season to
SEIN test a “direct file” system
Associated Press and help the federal gov-
NEW YORK (AP) — Most ernment decide on wheth-
taxpayers are interested in er to move forward with
filing their taxes directly to potentially implementing
the IRS for free, a new re- it in the future, IRS Commis-
port says, and that option sioner Danny Werfel and
will be tested next year. the Treasury’s Chief Imple-
The IRS has spent the mentation Officer Laurel
past nine months study- Blatchford confirmed on
ing whether U.S. taxpayers Tuesday.
want to see a free, e-filing There’s still limited details
system run by the govern- about the pilot as the
ment and is now preparing agency determines the
to launch a pilot program. basic structure of the pro-
The prospect of a free, gram, but Werfel said that
government-run, online tax members of the public will
filing system has been de- have the option to partici-
bated for a long time. Sup- pate.
porters argue that the op- The IRS was tasked with
tion would make tax return looking into how to cre-
services more equitable ate a “direct file” system
and accessible for taxpay- as part of the funding it
ers nationwide. But there’s received from the Infla-
also been pushback from tion Reduction Act, Demo-
some big tax-prep com- crats’ flagship climate and
panies. Now, the IRS plans health care measure that