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IRS Makes Direct File Permanent
The IRS has announced that its Direct File program, initially a pilot, will become a permanent fixture and expand for the 2025 tax season. This decision follows successful implementation in 12 states where over 140,000 taxpayers used the service to file their federal returns electronically at no cost during the 2024 tax season. According to the IRS, these taxpayers received more than $90 million in refunds and reported $35 million in balances due.
IRS Commissioner Danny Werfel highlighted the clear demand from taxpayers for a no-cost electronic filing option, noting the steadily growing interest in the program. After consulting with a variety of stakeholders and receiving endorsement from Treasury Secretary Janet Yellen, the program will now be expanded to include more tax situations and potentially more states.
In addition to making Direct File a permanent program, the IRS is taking further steps to enhance taxpayer services. Following the announcement, Commissioner Werfel appointed Fumi Tamaki as the Chief Taxpayer Experience Officer. Previously an advisor in the IRS Transformation and Strategy Office, Tamaki will now lead initiatives aimed at improving the taxpayer experience as part of the IRS’s broader digital transformation efforts.
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