{"id":27128,"date":"2023-10-17T18:20:52","date_gmt":"2023-10-17T18:20:52","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/10\/17\/irs-to-invite-select-taxpayers-for-test-of-e-file-return-system\/"},"modified":"2026-08-08T04:56:08","modified_gmt":"2026-08-08T04:56:08","slug":"irs-to-invite-select-taxpayers-for-test-of-e-file-return-system","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2023\/10\/17\/irs-to-invite-select-taxpayers-for-test-of-e-file-return-system\/","title":{"rendered":"IRS to invite select taxpayers for test of e-file return system"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The IRS plans to invite select taxpayers across 13 states to try out the agency\u2019s pilot <a href=\"https:\/\/apnews.com\/article\/irs-income-tax-free-electronic-filing-option-700e54251a39791091966bc0b356d342\">electronic free file tax return system<\/a> beginning in January.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2023\/08\/02\/to-conquer-mountains-of-paperwork-irs-aims-to-go-paperless-by-2025\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635860369156691568-irs-gettyjpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">To conquer mountains of paperwork, IRS aims to go paperless by 2025<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The effort is being financed through an $80 billion infusion of cash for the IRS over 10 years under the Inflation Reduction Act.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The IRS faces intense blowback from private tax preparation companies that have made billions from charging people to use their software. The introduction of a government-run option could upend the industry and fundamentally change the way taxpayers interact with IRS.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All eyes are on the agency to get it right \u2014 and avoid a roll-out reminiscent of the <a href=\"https:\/\/www.gao.gov\/products\/gao-14-694\">disastrous healthcare.gov website<\/a> rollout a decade ago, when many users encountered challenges accessing and using the website.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe plan is to roll it out in increments that get larger and larger, consistent with how products like this are rolled out in the private sector,\u201d IRS Commissioner Daniel Werfel said on a call with reporters previewing the latest details of the program.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"5424\" height=\"3616\" src=\"\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg\" alt=\"\" class=\"wp-image-74708\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg 5424w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg?resize=768,512 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg?resize=1024,683 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg?resize=1536,1024 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23250753125879.jpg.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 5424px) 100vw, 5424px\" \/><figcaption class=\"wp-element-caption\">FILE &#8211; Daniel Werfel testifies before the Senate Finance Committee during his confirmation hearing to be the Internal Revenue Service Commissioner, Feb. 15, 2023, in Washington. The IRS announced Friday, Sept. 8, that it is launching a new effort to aggressively pursue 1,600 millionaires and 75 large business partnerships that owe hundreds of millions of dollars in past due taxes. (AP Photo\/Mariam Zuhaib, File)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe want to make sure it is an easy to understand pilot\u201d Werfel said. He added that the data pulled from the pilot will be \u201cimperative\u201d in determining the usefulness of the program.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Werfel said the pilot is meant to be \u201cjust another choice taxpayers have\u201d to file their taxes. \u201cOur work to evaluate the feasibility of direct file is just one of many examples of how we\u2019re working to transform the IRS.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRS was tasked with looking into how to create a \u201cdirect file\u201d system as part of the funding it received from the Inflation Reduction Act, which President Joe Biden signed into law last summer. It gave the IRS nine months and $15 million to report on how such a program would be implemented.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Program criticisms<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main criticisms of the program is that it the direct file pilot only covers individual federal tax returns and does not prepare state returns. However, IRS officials said they are working with Arizona, California, Massachusetts and New York for filing season 2024 to integrate state taxes into the pilot.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Organizations like Code for America are working with the states to create their own state filing programs to be integrated in to the direct file tool.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gabriel Zucker, associate policy director for tax benefits at Code for America, said his firm is working with Arizona\u2019s Department of Revenue and New York\u2019s Department of Taxation and Finance to create a state filing tool.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The states are \u201creally blazing the trail for this exciting project and finding a way for state filing to work within the context of this, &#8221; Zucker said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is a team that\u2019s committed to doing government technology right,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers in nine other states that don\u2019t have an income tax \u2013 Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming \u2014 may also be eligible to participate in the pilot, according to the IRS.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Werfel said more details on who they choose to invite to the program will be released in January.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn terms of that first set of taxpayers, we are still working the details \u2014 to find the right size and the best approach.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All eyes are on the agency to get it right \u2014 and avoid a roll-out reminiscent of the disastrous healthcare.gov website rollout.<\/p>\n","protected":false},"author":7,"featured_media":46285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":15,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[31,15,14],"tags":[],"coauthors":[4039],"class_list":["post-27128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-management","category-it-networks"],"acf":{"subheadline":"","legacy_arc_id":"ASFYVIFNXJDFTMZ5UGAV6B57BI","arc_canonical_url":"\/management\/2023\/10\/17\/irs-to-invite-select-taxpayers-for-test-of-e-file-return-system\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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