IRS to Make Direct File Permanent for 2025 Tax Season
In late May, the Internal Revenue Service (IRS) announced that it will be making Direct File permanent, after a successful pilot this tax season in 12 U.S. states for the 2024 tax season.
The agency is also examining options to broaden Direct File’s availability across the nation, including covering more tax situations and inviting all states to partner with Direct File next year. During the 2024 tax season, 140,803 taxpayers filed their taxes using Direct File. The effort also saved filers an estimated $5.6 million in tax preparation fees for federal returns.
According to a survey of more than 15,000 Direct File users, 90 percent of respondents ranked their experience as “excellent” or “above average.” Respodents liked DirectFile’s ease-of-use, trustworthiness and that it was a free tool. In addition, 86 percent of respondents said that using Direct File increased their trust in the IRS.
“The clear message is that many taxpayers across the nation want the IRS to provide more than one no-cost option for filing electronically,” said IRS Commissioner Danny Werfel, in this press release. “So, starting with the 2025 filing season, the IRS will make Direct File a permanent option for filing federal tax returns. Giving taxpayers additional options strengthens the tax filing system. And adding Direct File to the menu of filing options fits squarely into our effort to make taxes as easy as possible for Americans, including saving time and money.”
To build Direct File, the IRS assembled a team of experienced tax experts, digital product specialists, engineers and data scientists from across the federal government. The agency partnered with the U.S. Digital Service and GSA’s 18F, as well as private sector partners, who all brought critical agile technology expertise.
A key driver for this effort was Karen Howard, Executive Director, Head of Office of Online Services at the IRS. As highlighted in this recent Makpar blog post, Ms. Howard was named a 2024 Fed 100 for enhancing the taxpayer experience, which also includes the launch of the agency’s Where’s My Refund tool.
The Makpar team would like to congratulate the IRS for making tremendous strides in enhancing the taxpayer experience! This news reinforces how the agency’s 2023 strategic operating plan to enhance the customer experience (CX) is fully coming to life.
Contact Makpar here for more information on how we can help support your agency’s CX journey.