As tax season kicks off, the Internal Revenue Service (IRS) has begun accepting and processing federal individual tax returns. This year, taxpayers have the option to file using a new free system called Direct File, which aims to provide a cost-saving alternative. The IRS processed an astounding 260 million tax returns for the previous year, highlighting the enormous task at hand for the agency.
Commissioner Daniel Werfel of the IRS expressed excitement about the start of the tax season. The agency has been diligently preparing for this period, making various improvements to assist taxpayers in need. One significant change this year is the introduction of Direct File as a pilot program in 12 states starting in mid-March. With this new option, taxpayers can file their simple tax returns electronically for free, potentially saving them money typically spent on tax preparation companies.
