The IRS announced that its free electronic tax filing system, Direct File, will be available to all Americans next year. This expansion follows a successful pilot program in 12 states where over 140,000 taxpayers claimed $90 million in refunds and saved $5.6 million in filing costs.
IRS Commissioner Danny Werfel stated that Direct File offers taxpayers more options, making tax filing easier and more cost-effective. The system received high marks from users, with 90% rating their experience as “excellent” or “above average.”
Despite the positive feedback, some critics, particularly from private tax preparation companies, argue that Direct File is unnecessary and costly. However, the IRS maintains that Direct File will complement, not replace, existing services and has extended its partnership with private companies for the IRS Free File program.
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