IRS Free Tax Filing System Will Include 13 More States

Published On Jan 24, 2025, 9:00 AM

The IRS has expanded its free online tax filing system, Direct File, to cover 25 states for millions of taxpayers, up from 12 last year. Though the initial trial was successful and received positive feedback, there are concerns about its future due to potential opposition from commercial tax preparation firms and some lawmakers. It's unclear if the Direct File system will continue beyond this tax season.

Stock Forecasts

INTU

Negative

The expansion of the IRS Direct File could impact tax preparation software companies negatively, as this program offers a free alternative for millions of users. Companies like Intuit, which owns TurboTax, may experience reduced customer bases if Direct File continues to gain popularity in the longer term.

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