IRS Direct File pilot reaches 100K users amid US tax deadline

Tax day is here! File your 2023 returns by 11:59 p.m. to avoid late fees. IRS improves services with new online tools.

Tax day is here, and Americans have until 11:59 p.m. in their local time zone to file their 2023 returns without facing a late fee. The 2024 filing season has seen significant improvements in service metrics following an $80 billion funding boost for the IRS. This funding has allowed the agency to enhance digitalization and offer new online tax filing tools that compete with private sector products.

The IRS Direct File program, a free service, has accepted 100,000 returns, according to the Treasury Department. Residents of Maine or Massachusetts have until April 17 to file their taxes due to state holidays. Those needing an extension can fill out Form 4868 to extend the deadline until October 15, with additional extensions possible for Americans living abroad.

The Direct File pilot program, available in 12 states, has been a highlight of the 2024 filing season for the IRS. Over 100,000 taxpayers have used this new online tool to file their returns directly on the IRS website. This comes after backlash against commercial tax filing software companies like Intuit, maker of Turbo Tax, for deceptive marketing practices.

In addition to Direct File, U.S. citizens have access to other free tax preparation options, including the Free File program and volunteer tax help programs. The IRS has also improved phone service following a $1.1 billion investment in taxpayer services. The agency's level of service on main phone lines reached over 88 percent, a significant increase from previous years.

While the IRS has seen improvements in service, there are still challenges, including a backlog of tax returns and the need for skilled auditors for increased enforcement efforts. The agency continues to adapt to the digital age, with the IRS website receiving 500 million visits during the 2024 filing season.

Overall, the IRS is working to provide better service to taxpayers and enhance enforcement efforts to ensure tax compliance. The agency's efforts are part of a larger overhaul made possible by increased funding and reflect a commitment to improving taxpayer experiences and increasing tax compliance.