May 19, 2023 - IRS Taking Steps Toward Direct Filing

Matthew Cuplin |

The Inflation Reduction Act of 2022 required the IRS to provide Congress with a report on the feasibility of running a direct filing system. In the report, which the agency submitted on May 16, the IRS said many taxpayers are interested in a direct file system, and the agency is capable of executing it. Therefore, the IRS is taking the necessary steps to begin a direct file pilot program for the 2024 filing season so it can assess the customer support and technology necessary to fully implement direct file for all taxpayers.

The IRS will also use the pilot program to determine whether the agency could overcome the potential operational challenges. However, it did note that effectively implementing direct file would require a sustained budget investment and careful management of the program's operational complexity.

The report relied on information the IRS collected through its Taxpayer Experience Survey as well as an independently conducted survey of taxpayers. The IRS plans to supplement that information with user research and usability testing conducted using an internal prototype that will allow the agency to better understand the user's perspective.