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Writer's pictureAndrew Oakley, CPA

IRS to Release Direct-File

Much (I believe) to the chagrin of H&R Block and Intuit, IRS is piloting a direct-file program in 2024 for relatively simple taxpayers with an interview-based mobile-friendly format.

There will be initial limits as the program around income types, deductions, and credits, but I think this is an amazing development.

For years, big companies *cough Intuit cough* have been lobbying against such efforts, because those types of “simple” returns are exactly the type of taxpayers their programs are geared toward.

I’ve been saying for years the majority of taxpayers would most likely be able to easily file directly with the IRS if that option existed. Remember that for individual filers, the IRS has records of things such as your W-2 earnings, mortgage interest statement, dividends & interest received, etc. That means if you’re a taxpayer, the IRS, in theory, should be able to have you verify the information they have on file, add anything missing, and file.

I’m excited to see how this program develops in the next couple years – and the easier it becomes for taxpayers to file their returns, the more compliance you’ll have.

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