The U.S. Internal Revenue Service (IRS) has launched a free online tax filing system known as Direct File which is currently being offered in twelve states across the United States. With its user-friendly interface, Direct File aims to simplify the often-complex tax filing process, making it easily accessible to everyone. In addition to state taxes, the system also provides a portal for users to file their federal tax returns.
As a project designed with user safety in mind, the system guarantees the protection of all confidential tax information. It primarily targets individuals with simple W-2 forms and those who opt for the standard deduction, sparing them the need to fill out paper forms, and thus speeding up the processing times. The elimination of paper also makes this method more environmental-friendly.
As part of its commitment to inclusivity, Direct File provides a Spanish language option, becoming available after 1 p.m. Eastern Time on a designated Tuesday. This development means Spanish-speaking users will now have barrier-free access to its features, leading to an efficient tax filing experience regardless of language preference.
In a statement from IRS Commissioner Daniel Werfel, he lauded Direct File as a “game-changer” that would enhance transparency and help to simplify the tax filing process for all Americans. He went on to add that this free service could significantly reduce errors and lead to quicker refunds.
According to The Treasury Department, an estimated 19 million eligible taxpayers could potentially benefit from the Direct File system. Over 20,000 people have already used the trial program, with an expected uptake by nearly 100,000 more users in the near future.
The system, however, is primarily designed for federal taxes, with state taxes requiring separate filing. National Economic Advisor Lael Brainard has expressed optimism that Direct File can save millions from high filing fees while simultaneously easing the process. She attributed its implementation to President Biden’s dedication to reducing household costs.
