IRS and Treasury Department Announce Pilot Program to Allow Taxpayers to Directly File and Pay Taxes to the IRS

The Internal Revenue Service (IRS) and the U.S. Treasury Department have announced a pilot program to allow some taxpayers to electronically file and pay their taxes directly to the IRS. The program is set to launch in early 2024 and will assess the complexity of taxes that could be handled through such a system.

IRS Commissioner Daniel Werfel said on a press call that the pilot program is a result of the Inflation Reduction Act of last year, which included $80 billion in funding for the agency and directed the IRS to look into the feasibility of such a system.

The move could mark a major change in the way U.S. taxpayers deal with the revenue service as well as with third-party tax preparation software giants, such as Intuit and H&R Block. Currently, taxpayers spend a lot of time and money every year on preparing their taxes, and the direct-file program could help streamline the process.

The IRS has built a prototype system for the program and will invite some taxpayers to test it out next year. The agency has not yet released any details on who will be eligible for the pilot program or what the criteria will be.

The IRS and Treasury Department have not yet provided any further information on the program, but they have said that they are committed to making the filing process easier and more efficient for taxpayers.