Resource Policy

IRS Report to Congress: IRS-run Direct e-File Tax Return System

The report evaluates the feasibility, costs, taxpayer interest, and operational challenges of implementing an IRS-run free direct e-file tax return system, as required by the Inflation Reduction Act.

Published Year: 2023

The report explores the feasibility and potential implementation of an IRS-run free direct e-file tax return system, as mandated by the Inflation Reduction Act.

It provides insights into taxpayer opinions on such a system, including interest, trust, and concerns, based on surveys and user research. The report also evaluates the estimated costs, benefits, and operational challenges associated with developing and maintaining the system, concluding that while there is significant taxpayer interest, particularly for self-preparers and younger or limited English proficiency groups, there are complexities involved in launching and sustaining the service, especially regarding customer support, state return filing, and integration with existing tax systems.