On June 3, 2024, the IRS unveiled a new measure targeting considerable taxpayers’ savings—the Direct File tax filing system. This free-to-use platform aims to simplify the tax filing process, negating the need for third-party involvement. Taking strides in technological advancement, the initiative promotes fiscal independence among taxpayers by eliminating fees associated with tax filing.
Confirmed by the IRS and the U.S. Treasury Department, this service will extend nationwide for the 2025 tax filing season. From New York to California, every corner of the nation can utilize this accessible and efficient tool. In a time where tax regulations grow more complex, such a service proves a critical asset during tax season.
This initiative follows a successful pilot program that enabled nearly 140,000 taxpayers to receive over $90 million in refunds, which culminated in savings of about $5.6 million in filing expenses.
Utilizing the IRS’s free Direct File system
Encouraged by this success, the IRS now plans to expand the Direct File system nationally, providing accessible and cost-efficient tax filing services to more taxpayers.
The initial run of the program saw 140,803 citizens effectively file their tax returns within five weeks of the service’s inauguration. These taxpayers claimed over $90 million in refunds, ultimately saving nearly $5.6 million in federal tax preparation costs.
The program earned high commendation from participants, with 90% rating it as “excellent” or “above average” in a GSA Touchpoints survey of 11,000 respondents. Users particularly appreciated the absence of hidden charges and aggressive upselling methods—an affirmation of the program’s integrity and effectiveness.
Despite the introduction of Direct File, the IRS Free File system will continue to operate until 2029. Users can choose to use either platform as both will remain supported by the IRS. It’s part of the ongoing goal to make the tax filing process more streamlined and less intimidating for the average taxpayer.
