Last year, the U.S. Internal Revenue Service (IRS) launched a series of initiatives aimed at pursuing high-wealth individuals who have failed to pay their tax debts. The IRS says the campaign is focused on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt.
A pilot version of the online program, known as Direct File, launched earlier this year. It provides step-by-step guidance to taxpayers filing their federal tax returns.
A pilot version of the online program, known as Direct File, launched earlier this year. It provides free step-by-step guidance to taxpayers filing their federal tax returns. Last year, more than 140,000 people across 12 states successfully filed their federal tax returns using Direct File, exceeding the agency’s expectations. Next year, the IRS plans to allow some taxpayers in all states and Washington, DC, to use the program.
While the pilot focuses on “simple tax situations,” the U.S. Treasury estimates the pilot could cover about one-third of tax situations for 19 million taxpayers. Within five years, the program could save the average filer $160 per year, or a collective $11 billion annually including tax prep fees and time, according to a report from the Economic Security Project.
