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The IRS has struggled with paper backlogs for years. But today, the agency unveiled a "paperless processing initiative," aiming to eliminate up to 200 million pieces of paper every year, slash processing time by half and speed up refunds. Starting during the 2024 filing season, taxpayers can choose digital correspondence and file all tax returns electronically by 2025. It's part of a broader IRS overhaul of customer service, technology and compliance. The plan comes amid continued scrutiny of the IRS funding approved by Congress in 2022. But experts say sustained funding is necessary to carry out the agency's long overdue upgrades. https://lnkd.in/dB75-Cat

The IRS just announced some exciting updates to the Direct File pilot that launches during the 2024 filing season. Here are the highlights: - Starting small to get it right - the pilot will initially launch with a limited number of people to fully test the new service and continuously improve the taxpayer experience. As the pilot progresses, the IRS expects to gradually increase the number of taxpayers who can use the program. - Direct File customer support will feature *live chat* with dedicated IRS customer support representatives. - Direct File is built in-house by a cross-agency, multi-vendor team, including USDS and 18F. - The Direct File pilot is available to eligible taxpayers in participating states and states with no income tax - all participating states and eligibility info is at directfile.irs.gov More to come - stay tuned to directfile.irs.gov for more updates as we head into filing season. https://lnkd.in/erv9jfVN

And still more. Tax administrators are usually subject matter experts (SMEs) in taxation. Experts can leverage the most out of what they know by listening to those who they serve through the knowledge they possess. The IRS 'got this' out of the gate. They have been listening to those they're interacting with on IRS Direct File and building upon that feedback: "A General Services Administration Touchpoints survey of more than 11,000 Direct File users found that 90% of respondents ranked their experience with Direct File as “Excellent” or “Above Average.” When asked what they particularly liked, respondents most commonly cited Direct File’s ease of use, trustworthiness and that it was free. Additionally, 86% of respondents said that their experience with Direct File increased their trust in the IRS, and 90% of survey respondents who used customer support responded that their experience was “Excellent” or “Above Average.” Additionally, user feedback received throughout the pilot informed product updates and enhancements." Looking forward to the advances to IRS Direct File for TY2024 in the 2025 processing season! #IRS #IRSDirectFile #PublicAdministration #DigitalGovernment #IndividualIncomeTax #FedStatePartnership #USDigitalService

In case you missed the memo: "The Internal Revenue Service reopened access Tuesday to its Direct File free online tax preparation system after temporarily closing it to new users who want to pilot test the program. "Direct File will reopen to new users today starting at 5 p.m. EST to continue to test various aspects of the service," said an IRS official in a statement Tuesday. "When this availability window opens, new users in the 12 pilot states will be able to start their returns. After the availability window closes to new users, taxpayers who have started a return can continue using Direct File even during planned pauses." #irs #irsnews #directfile #taxes #taxfiling #taxnews #accountants

The IRS is launching a new tax filing service called Direct File, allowing eligible taxpayers to file their taxes online for free directly with the IRS. The pilot aims to simplify the tax filing experience and provides a mobile-friendly, secure, and accessible platform. Direct File is created in-house with collaboration from the U.S. Digital Service and 18F. It walks users through the filing process, offering real-time live chat support and email confirmations upon submission. The pilot is introduced gradually to a limited number of users, and updates on eligibility and progress can be found on directfile.irs.gov. The service requires identity verification through ID.me, and its success in 2024 may lead to future iterations with additional authentication options. The Direct File Team invites taxpayers to consider this new option as the filing season approaches.

If the Internal Revenue Service's plans work out, the agency and taxpayer interactions soon will be paperless. The first digital shift comes in 2024, when taxpayers will have the option to file returns and send other correspondence without postal service involvement. Then in 2025, the IRS is aiming for paperless processing for all tax returns, and more.

The IRS is piloting a new "Direct File" system for 2024! Aiming to make tax returns more equitable and accessible, this free IRS-operated platform could be a game-changer for many taxpayers. However, with pushback from big tax preparation businesses and concerns about the IRS's multi-faceted role, its future beyond the pilot is still hazy. Curious about who's eligible or the reasoning behind it? Dive into our latest blog post for all the details! https://lnkd.in/e4VeKVtJ Jody H. Chesnov, CPA, Jeff Coyle, Darren Schulman CPA #IRSDirectFile #TaxUpdates #TaxSeason2024 #DirectFile #Accounting 

Big news for the 2024 tax filing season! The majority of returns and documents will be able to be filed electronically! This major policy change is expected to reduce the significant volume of paper returns the IRS receives each year, reducing backlogs. Read on to learn more about this update. #IRSupdate #taxfilingseason #electronicfiling

IRS Closes its Direct File Pilot Program The IRS has closed its Direct File pilot program after more than 140,000 taxpayers in 12 states used the system to e-file returns. The IRS implemented the Direct File pilot to test the feasibility of a system that allows taxpayers to file their federal income tax returns directly with the agency for free but has not decided whether it will continue the program. Since the pilot program began in March 2023, the IRS has collected and analyzed user data. The agency will continue its analysis and plans to issue a report on Direct File's scope, technology and taxpayer experience, customer support, state integration, costs and benefits. Over the next few weeks, the IRS will also meet with a variety of partners and stakeholders to learn more about how taxpayers interacted with the Direct File system. By the final week of the filing season, Direct File was accepting more than 5,000 returns a day and taxpayers using the system claimed more than $90 million in refunds and reported balances due of $35 million. The states from which the most Direct File returns were accepted were California (33,328), Texas (29,099) and Florida (20,840). #irsdirectfile #irsfreefile #irspilotprogram #taxpreparation