The program will allow taxpayers in participating states to file their taxes directly with the agency during the 2024 tax season.
“This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS,” IRS Commissioner Danny Werfel said in a statement.
“In this limited pilot for 2024, we’ll be working closely with the states that have agreed to participate in an important test run of the state integration,” he added. “This will help us gather important information about the future direction of the Direct File program.”
Only taxpayers in the 13 states with “relatively simple returns” will be able to participate in the pilot program, the IRS noted.
Four states — Arizona, California, Massachusetts and New York — agreed to work with the IRS to integrate their state taxes with the direct tax-filing program.
Taxpayers in nine other states without income tax — Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — will also be able to participate, the IRS said on Tuesday.
The IRS initially announced plans to launch the pilot program in May following a report on its feasibility, a requirement in the Inflation Reduction Act.
The Hill’s Julia Shapero has more here.
