Comment by Hilift
5 days ago
FYI, there are/were two systems. "Direct File" is probably the more complex and integrates directly with 25 participating states. The other is "Free File" and only covers some payers.
https://www.irs.gov/filing/irs-direct-file-for-free
https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-f...
Although these systems are similar in goals, they are pretty different in terms of how they're structured:
- Direct File: Was built by the US government to make tax filing easier - Free File: Is a subsidy from the US government to tax software to make it cheaper for people to file taxes
Direct file had the promise of making things easier and cheaper overall while Free File is more of a cost shifting approach.
Features like importing tax data from other federal government systems were included in Direct File to make it easier to file taxes. These types of features would be hard for those outside the government to do. At a values level, Free File provides funding to the tax preparation software companies. These companies benefit from difficulty in filing taxes because it creates a market for their products.
Some of the DirectFile code was published on GitHub.
https://github.com/IRS-Public/direct-file
Yep, and "Free File" is the one that you are required to go through TurboTax or their 1-2 'competitors' to do, who are free to do their best to essentially bury and shadowban it from search engines. They're required by law to offer it, but are allowed to try to hide it from you and to promote alternative programs that will likely result in upsells for most taxpayers.
Uh no, "Free File" is split into two versions and the second option on there, "Free File Fillable Forms", is available to everyone for free without using a third party. I've been using it for years.