IRS Expanding Program That Lets Taxpayers File Directly For Free

The extent of the expansion, however, will depend on how many states decide to link up with the revenue agency.

The IRS said Thursday it will ramp up a program that allows taxpayers to electronically file their taxes directly with the agency, but the extent of the expansion will depend on how many states partner with it.

The Direct File pilot saw 140,803 returns filed this spring from users in a dozen states out of the 144 million filed nationally, but the overwhelmingly positive response was enough to convince officials to invite all 50 states and the District of Columbia to join it.

Treasury Secretary Janet Yellen told reporters on a conference call that 90% of the pilot program’s users gave it a positive rating.

“Direct File saved users $5.6 million in filing fees and helped them receive $90 million in refunds,” she said.

The move will likely be hailed by progressive groups, which have long complained that for-profit preparers benefit from the complex tax code and use their sites offering free tax preparation to upsell paid-for services.