US: IRS To Rollout Free E-file Tax Return System In 13 States

The IRS is planning to launch a free E-file Tax return system in 13 states. It is only for the select taxpayers with invite-only beginning in January.

The Arizona Department of Revenue Director Rob Woods said, ‘The Department of Revenue is always seeking ways to help taxpayers have a simpler, smoother experience, and joining a pilot program that is already occurring at the federal level will ultimately provide a benefit to those we serve. Anything that makes it easier for people to file taxes is a good thing.’

The private tax preparation companies have made billions from charging people to use their software so far. Now that the government-run option comes into use, it is expected to change the tax return filing system in a revolutionary way.

The agency estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season. The agency plans to work with nonprofits, congressional officers, states, and others to identify taxpayers who are eligible for the pilot program, based on the types of income, tax credits, and deductions that they claim.

Taxpayers in nine other states that don’t have an income tax – Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — may also be eligible to participate in the pilot, according to the IRS.