After a successful year of piloting during the 2024 tax season, the IRS said today it is moving forward with making its Direct File program a permanent tool.
The tax agency announced today that the program – which allows taxpayers to file their tax returns directly with the agency electronically – will become a permanent fixture available for use starting in the 2025 tax filing season.
“The clear message is that many taxpayers across the nation want the IRS to provide more than one no-cost option for filing electronically,” said IRS Commissioner Danny Werfel.
“So, starting with the 2025 filing season, the IRS will make Direct File a permanent option for filing federal tax returns. Giving taxpayers additional options strengthens the tax filing system. And adding Direct File to the menu of filing options fits squarely into our effort to make taxes as easy as possible for Americans, including saving time and money,” Werfel said.
The agency conducted a limited pilot of Direct File for the 2024 tax season, and more than 140,000 taxpayers in 12 states filed their Federal tax returns through the program.
Crucial for the expansion of Direct File in the future, the IRS said it is inviting all states to partner with Direct File next year, and the agency also pledged to look at “covering more tax situations” with the tool next year.
The agency said it will announce more details on the 2025 expansion “in the coming months.”
While the pilot was hailed as a success, the IRS said today it will continually analyze data gained generated by the pilot as it looks to expand program availability to more states.
“User experience – both within the product and integration with state tax systems – will continue to be the foundation for Direct File moving forward,” Werfel said.
“We will focus, first and foremost, on continuing to get it right,” he said. “Accuracy and comprehensive tax credit uptake will be paramount concerns to ensure taxpayers file a correct return and get the refund they’re entitled to. And our North Star will be improving the experience of tax filing itself and helping taxpayers meet their obligations as easily and quickly as possible.”
