IRS Plans Limited Rollout Of Free E-File Tax Return System With Invitations To Select Taxpayers

WASHINGTON (AP) — The IRS plans to invite a select group of taxpayers across 13 states to try out the agency’s pilot electronic free file tax return system, beginning this January.

Facing intense blowback from private tax preparation companies that have made billions from charging people to use their software — if successful, the introduction of a government-run option could upend the industry and fundamentally change the way taxpayers interact with IRS.

The agency, which is working on implementing state filing into its pilot, estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.