Tax-Prep Companies Need Free E-File Competition, IRS Chief Says

Nov. 14, 2023, 8:22 PM UTC

An IRS-run free e-filing system for taxpayers has the potential to disrupt and give competition to an entrenched tax-prep industry, IRS Commissioner Danny Werfel said.

The agency said in May that it was planning to establish a phased direct file pilot program for the 2024 filing season. Republicans and tax-prep companies have fought the program, saying it’s unnecessary.

But Werfel said Tuesday an IRS-run direct file option could inspire companies that already have free cloud solutions “to make sure that their free file option works.” He was speaking to the media following remarks at a conference sponsored by the American ...

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