IRS plans limited rollout of free e-file tax return system with invitations to select taxpayers

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IRS plans limited rollout of free e-file tax return system with invitations to select taxpayers
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The IRS plans to invite a select group of taxpayers across 13 states to try out the agency’s pilot electronic free file tax return system, beginning this January.

FILE - A sign outside the Internal Revenue Service building is seen, May 4, 2021, in Washington. The IRS plans to invite a select group of taxpayers across 13 states to try out the agencys pilot electronic free file tax return system, beginning this January. electronic free file tax return systemThe agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.

The agency plans to work with nonprofits, congressional offices, states and others to identify taxpayers who are eligible for the pilot program, based on the types of income, tax credits and deductions that they claim. The IRS published a feasibility report in May laying out taxpayer interest in direct file, how the system could work, its potential cost, operational challenges and more.

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