IRS says pilot Direct File was ‘huge success’

by ian


The Biden administration says that its pilot free tax filing website, Direct File, was a huge success.

The IRS reports that more than 140,000 households used the software in the 19 states it was made available. That crushes the agency’s goal of 100,000.

IRS Commissioner Danny Werfel told lawmakers on Friday that it also earned high reviews.

The IRS reports that the website came in under budget with operating costs averaging $17 per return. In exchange, they say, it saved Americans an estimated $5.6 million in preparation fees.

However, the program’s future is still unclear. The IRS spent over $24 million on studies and to build the website. Critics say that doesn’t include costs paid by other government agencies.

The commissioner promised to release a more detailed report on the costs in the coming weeks. Following that, officials will decide if they will renew Direct File for next year.