Page 35 - IRS Plan

Initiative 1.5 Explore direct file

The IRS will explore providing taxpayers the option to file certain tax returns directly with the
IRS online

Where we are heading Milestones

We will explore making it easier for many May 2023
taxpayers to file returns for free with a question- 1 Congressionally mandated study on direct
based electronic service to prepare and file tax file issued
returns directly with the IRS. This service could
lower barriers to claiming certain incentives. FY 2023
2 Feasibility and cost of releasing a direct
Many other tax authorities have rolled out the file service determined based on direct
ability to file taxes directly for free as part of their file study results
digital transformations. The IRA requires the IRS
to study the design of an IRS-run direct file service.
As the IRS examines the cost and feasibility of 3 FY 2023
building a direct file option, as required by the IRA, Next steps determined and communicated
it will also study taxpayer preferences for products. to Congress and other stakeholders
The results of the study will inform if and how the
IRS should design such a service.
Key dependencies

What success would look like 1.5 depends on projects in initiatives:
1.3, 4.4, 4.5, 4.7, 5.7
Success for this initiative would include high
satisfaction rates among customers who use the Initiatives dependent on projects in 1.5:
direct file service, if pursued, and continued use None
of a direct file service by taxpayers from one year
to the next.

Key projects

1. Study the feasibility of building a direct file
service and the preferences of taxpayers.
Ensure any direct file service is feasible,
cost-effective, secure, and meets the needs
of taxpayers.
2. If the outcome of the feasibility study
warrants, create an additional option for
how taxpayers can file their tax returns.
Direct file would give eligible taxpayers a free,
public electronic return-filing service option.

28 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives