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IRS plans limited rollout of free e-file tax return system with invitations to select taxpayers

The IRS plans to invite a select group of taxpayers across 13 states to try out the agency’s pilot electronic free file tax return system, beginning this January

By FATIMA HUSSEIN
Published - Oct 17, 2023, 02:03 PM ET
Last Updated - Oct 17, 2023, 02:45 PM EDT

WASHINGTON (AP) — The IRS plans to invite select taxpayers across 13 states to try out the agency's pilot electronic free file tax return system beginning in January.

The agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.

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.

All eyes are on the agency to get it right — and avoid a roll-out reminiscent of the disastrous healthcare.gov website rollout a decade ago, when many users encountered challenges accessing and using the website.

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