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The Internal Revenue Service has just announced on X (formerly Twitter) that it has officially closed down the pilot IRS Direct File program, with over 300,000 taxpayers in 12 states signing up for Direct File accounts and over 140,000 taxpayers using the service to file their federal income taxes.
Direct File users in the 12 pilot states were able to claim over $90 million in tax refunds and report $35 million in unpaid tax balances.
The IRS began offering Direct File Pilot in mid-March, but incrementally increased availability of the option over time.
According to the IRS, the Direct File option was well received by taxpayers across the nation. Direct File processed more than 5,000 accepted returns every day.
There were millions of people who visited the Direct File website - including many outside the 12 pilot states. The eligibility checker alone was used by more than 3.3 million taxpayers during the pilot.
As a whole, the IRS's expectations for the limited pilot were exceeded and the agency had much more data than was required to evaluate the program.
Customer Support Technology
A live chat feature was available in Direct File pilot, where users could contact IRS employees in English or Spanish.
By integrating live chat directly into Direct File, taxpayers were able to get assistance without having to leave the product to use another communication channel, like the phone. Which assisted in providing a seamless taxpayer experience.
IRS Direct File Program User Feedback Was Good
Data was collected and analyzed by the IRS since the pilot began. An agency report on the pilot's scope, technology, taxpayer experience, customer support, integration with states and costs will be released in the coming days. As Direct File proceeds, the report will highlight both the pilot's strengths and areas for improvement.
According to a survey of more than 11,000 Direct File users, 90% said they had an "Excellent" or "Above Average" experience with the service.
Most respondents said they liked Direct File because it was free, easy to use, and trustworthy.
The following states participated in the program:
• Arizona
• California
• Florida
• Massachusetts
• Nevada
• New Hampshire
• New York
• South Dakota
• Tennessee
• Texas
• Washington state
• Wyoming
No decision has been made about the future of Direct File at this time.
READ MORE ON DIRECT FILE PILOT PROGRAM
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Frequently Asked Questions
How many taxpayers used the IRS Direct File pilot program, and what were the financial results?
Over 140,000 taxpayers used the Direct File pilot to file their federal income taxes, while more than 300,000 taxpayers signed up for Direct File accounts. Users in the 12 pilot states successfully claimed over $90 million in tax refunds and reported $35 million in unpaid tax balances.
Which states participated in the IRS Direct File pilot program?
The 12 states that participated in the Direct File pilot were Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state, and Wyoming. Taxpayers living outside these states were not eligible to file through Direct File, though many still visited the website and used the eligibility checker tool.
What kind of customer support was available to taxpayers using Direct File?
Direct File included a live chat feature that allowed users to communicate directly with IRS employees in either English or Spanish. The chat was built directly into the Direct File platform so taxpayers could get help without leaving the product to use a separate channel, such as the phone.
How satisfied were taxpayers who used the Direct File pilot program?
A survey of more than 11,000 Direct File users found that 90% rated their experience as "Excellent" or "Above Average." Respondents most commonly cited the program being free, easy to use, and trustworthy as the reasons for their positive feedback.
Will the IRS Direct File program be available to taxpayers in future tax years?
As of the pilot's close, no decision has been made about the future of Direct File. The IRS has indicated it will release a report in the coming days covering the pilot's scope, technology, taxpayer experience, customer support, state integration, and costs, which will inform any decisions about the program going forward.
About the Author
EA
Nick Charveron is a tax professional at IRS.com with expertise in U.S. federal and state tax law. Their articles are written to help taxpayers understand complex tax topics in plain English.