Future of IRS Direct File Hinges on Pilot Results, Politics

March 14, 2024, 8:45 AM UTC

The new free IRS-run online tax-filing system is on trial this filing season in more ways than one.

The results of the agency’s pilot—which faces opposition from the tax-prep industry and Republicans but is being cheered by Democrats—will give the IRS fuel to decide the experiment’s future.

With weeks left in the filing season, stakeholders want to know if the system known as Direct File is here to stay. Next steps will depend on how the IRS measures early results, but even with a successful pilot the fate of the project is not shielded from the outcome of the upcoming ...

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