- ORIGINAL NEWS
IRS free tax filing pilot processed more than 140,000 returns, saved consumers $5.6 million in prep fees
- SUMMARY
The IRS recently conducted a pilot program called IRS Direct File, where over 140,000 taxpayers were able to file their taxes for free.
This was a success, saving filers an estimated $5.6 million in tax preparation fees.
Direct File was available for certain taxpayers in 12 states and included only simple tax situations, such as W-2 wages, Social Security retirement income, and interest under $1,500.
Filers also had to claim the standard deduction and qualify for specific credits.
The results of the pilot were positive, with around 90% of surveyed users rating their experience as “excellent.”
While the IRS has not yet made a decision on the future of Direct File, they plan to release a more detailed report soon and gather feedback from various stakeholders.
If Direct File is expanded in the future, it could include additional states and cater to more complex tax situations.
The IRS is expected to make a decision on the program’s future later this spring.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
Negative
“The program fully opened for certain taxpayers in 12 states in early March and saved filers an estimated $5.6 million in tax preparation fees for federal returns, IRS Commissioner Danny Werfel told reporters on a press call.”
“Direct File surveyed more than 15,000 users, around 90% of whom rated their experience as “excellent,” the agencies reported.”
“However, the IRS has not made a decision about the future of Direct File.”
“The pilot only accepted Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less.”