NEW YORK — After several weeks of testing, an electronic system for filing tax returns directly with the Internal Revenue Service (IRS) is now available to taxpayers in 12 states in the United States.
The new system, called DirectFile, is a free online tool. Taxpayers in select states, who have very simple W-2 income and withholding forms and claim a standard deduction, may be eligible to use the tool this tax season.
The program called DirectFile also offers a Spanish version.
The Treasury Department estimates that one-third of federal income tax returns could be filed through the new DirectFile program, and that 19 million taxpayers could be eligible to use the tool this tax season ending in April.
“DirectFile will offer millions of Americans a free and simple way to file their taxes without high and unnecessary expenses, and without the need to add other services or updates. This puts hundreds of dollars back into the pockets of working families each year, fulfilling the IRS’s promise to reduce costs,” said Lael Brainard, national economic advisor.
States with the program available include Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, Arizona, Massachusetts, California and New York.
DirectFile will only be used to file federal income tax returns; Taxpayers in states that require state taxes to be filed must do so separately.
The DirectFile pilot program is part of the IRS’ effort to build a new government service that can replace the use of commercial filing software, such as TurboTax. It is designed to be simple and provides a step-by-step procedure with easy-to-answer questions.
