New IRS Tool for Free Tax Return E-Filing Is Live

Many taxpayers with relatively simple returns can now electronically file their returns directly with the IRS for free for the first time. The IRS, after months of preparing its government-run free e-filing pilot tool, launched the program to the wider public Tuesday. The Treasury Department expects about 100,000 of the millions eligible to use it. Democrats’ Inflation Reduction Act set aside $15 million for the IRS to issue a report on the feasibility of creating a direct e-filing tax return system. The pilot comes after years of controversy and pushback from Republicans and tax-prep software companies saying the IRS shouldn't be a preparer, collector, and enforcer. Bloomberg Tax reporter Erin Slowey spoke with Bridget Roberts, chief of Direct File at the IRS, about how the rollout is going, who is eligible, and the fate of a permanent agency-run option. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.