Some Taxpayers Will Be Able to File Directly With IRS Next Year Under Pilot Program

IRS Commissioner Danny Werfel, shown at his swearing-in ceremony in April, said Tuesday that a small number of taxpayers will be able to use a prototype system the IRS has built to e-file taxes next year. “Direct file, whether in its pilot phase or whether a decision is made to go forward more broadly, will be just an option for taxpayers, among other options that taxpayers have,” Werfel said. “Direct file, whether in its pilot phase or whether a decision is made to go forward more broadly, will be just an option for taxpayers, among other options that taxpayers have.” - IRS Commissioner Danny Werfel The announcement of even the pilot program, though, is likely to stir up resistance on Capitol Hill and in the tax prep world. Rep. Richard Neal, the top Democrat on the tax-writing House Ways and Means Committee, said, “When 70% of taxpayers qualify for IRS’s current Free File services, yet less than 3% take advantage, it’s time for change.” The IRS decision was announced along with the release of a long-awaited report on the feasibility of direct filing. Matthew Busch for The Washington Post via Getty Images The report found some taxpayers would be interested in using a direct file system specifically because it would be built by the IRS, but others were concerned about why the IRS would offer the product and its potential implications for tax enforcement.