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Tax Season Direct File
FILE - The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. The IRS said Friday, April 26, 2024, more than 140,000 taxpayers filed their taxes through its new direct file pilot program. It says the program's users claimed more than $90 million in refunds, saving roughly $5.6 million in fees they would have spent with commercial tax preparation companies. (AP Photo/Jon Elswick, File)

140,000 people did their taxes with the free IRS direct file pilot. But program's future is unclear

The IRS says more than 140,000 taxpayers filed their taxes through its new direct file pilot program

By FATIMA HUSSEIN
Published - Apr 26, 2024, 01:01 PM ET
Last Updated - May 27, 2024, 01:06 AM EDT

WASHINGTON (AP) — The IRS said Friday that more than 140,000 taxpayers filed their taxes through its new direct file pilot program and participants saved roughly $5.6 million in fees they would have otherwise spent with commercial tax preparation companies.

The government pilot program, rolled out this tax season in 12 states, allows people with very simple W-2s to calculate and submit their returns directly to the IRS for free. Those using the program claimed more than $90 million in refunds, the IRS said.

But despite what IRS and Treasury Department officials said was a successful rollout, they aren't saying yet whether the program will be available next year for more taxpayers. They say they need to evaluate the data on whether building out the program is feasible.

“We will take time to analyze the data and collect feedback from a wide variety of stakeholders before making a decision about direct file's future,” IRS Commissioner Daniel Werfel said on a call with reporters.

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