The Biden administration concluded tax season by introducing Direct File, a free online tax filing platform that allowed over 100,000 taxpayers to file directly with the IRS, bypassing commercial tax preparers. Despite being a pilot program, Direct File received praise for its user-friendly interface, with comparisons to popular commercial tax software like TurboTax.
While Direct File garnered positive reviews from users, it faced criticism from tax software companies and Republicans, who questioned its necessity and popularity. The future of Direct File depends on the upcoming election and the priorities of the next Treasury Secretary. However, some advocates believe that the IRS may expand the program to more states and tax situations in the future.
In addition to Direct File, other government-supported options like Free File Alliance and Volunteer Income Tax Assistance programs saw an increase in usage this tax season. The IRS also boosted its customer service with additional funding, resulting in one of the smoothest tax filing seasons in recent years, according to IRS Commissioner Danny Werfel. Despite challenges and criticisms, the success of Direct File has opened up avenues for potentially improving and expanding tax filing options for Americans in the future.