IRS makes free tax return program permanent and is asking all states to join in 2025

FILE - A sign outside the Internal Revenue Service building is seen, May 4, 2021, in Washington. The government is making permanent its new free electronic tax return filing system and expanding to taxpayers in all 50 states. The IRS said Thursday it will make permanent the free electronic tax return filing system that it experimented with this year and is asking all 50 states and the District of Columbia to help taxpayers file their returns through the program in 2025.

The IRS was tasked with looking into how to create a “direct file” system as part of the money it received from the Inflation Reduction Act signed into law by Presidentin 2022. It gave the IRS nine months and $15 million to report on how such a program would work. Werfel said expanding the program will provide another filing option to taxpayers and "fits squarely into the IRS’ effort to make taxes as easy as possible for Americans, including saving time and money."

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