The Internal Revenue Service Tuesday said it would launch a free, government-provided direct tax filing option next year, which could lead to the full-scale launch of an IRS filing system that would compete with private tax preparers.
The IRS said in an exploratory report to Congress on the issue that a majority of American taxpayers have indicated in surveys and in other research that they are interested in using a free government-provided tool to electronically file their tax returns.
The agency estimated that a new direct filing system would cost between $64.3 million and $248.9 million a year to operate, depending on the complexity of returns accepted and the number of taxpayers using the system.
The size, scope and complexity of the IRS pilot program, to be available in the 2024 tax filing season, has yet to be determined, IRS Commissioner Danny Werfel told reporters.
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