The IRS will test free, direct tax filing in 2024

THE IRS will test A free tax deposit service In 2024 For A subset of lucky taxpayers In as a lot as 13 States, THE agency announcement Today. Direct Deposit, as THE service East called, East A shot through THE bows of TurboTax, HOUR Block And other paid tax preparation services, of which the owners to have resisted free And simple tax deposit For decades.

"This East A critical stage Before For This innovative effort that will test THE feasibility of provide taxpayers A new option has deposit their Back For free directly with THE IRS, " said IRS Commissioner Dany Werfel In A press release announcing THE news.

THE program East more Or less A direct result of funding provided by THE 2022 Inflation Reduction Act, through which $15 million was reserve For THE aim of exploring And execution A simple, free, provided by the government tax deposit service.

On THE last year And A half, THE IRS has has been building out THE pilot program, which he characterizes as be "A more potential option" on THE continuum Since self-managed Free Deposit, Since commercial some products as TurboTax has A tax preparation professional.

THE IRS describe Direct Deposit as "A mobile friendly, based on interviews service" available In English And Spanish, destined For people with simpler tax situations as W-2 And common income credits And deductions. If THE interviews are with real people Or a few kind of automatic Or semi-automatic process East not clear. But This, as a lot of It is details, will likely change as THE agency receives back Since This limit ladder driver.

Arizona, California, Massachusetts And New York are THE four States that are integrating with Direct Deposit For 2024 (that's to say. THE 2023 tax year); Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington And Wyoming "can Also be eligible," due has not having State income tax, but he East not final. Each State was given THE opportunity has participate In THE Direct Deposit program, but not all were "In A position has join us. »

Among THE residents of these States, A limit number of people with "relatively simple Back" will to have THE opportunity has to try Direct Deposit. This will In turn "allow THE IRS has assess THE costs, benefits And operational challenges partner with provide A voluntary Direct Deposit option has taxpayers. » In software terms, marry probably call This A alpha.

Intuition And others which to have surreptitiously fought against simple, free And transparent tax deposit For a lot years (as ProPublica documented not long There is) are No doubt bubbling And Planning emergency meetings. As broadband And mobile businesses, public notice has more and more turned against them as THE predator nature of their services And pressure has become obvious. When A free animated dating sim can TO DO your taxes as GOOD as A billion dollars business, THE worm has turned.

Update: A Intuition spokesperson contacted TechCrunch has call Direct Deposit "entirely redundant," And potentially A "financial nightmare" that will cost Billions. But We won't know until We try.

To wait for has hear more about This program as tax season approaches.