Finally, Americans could soon ‘direct file’ taxes online without a middleman

Most Americans want to pay the taxes they owe. Few Americans enjoy preparing their taxes and paying companies to help them. And, right now, millions of Americans are paying companies to file their taxes when they should have access to easy and free ways to do so. 

The Treasury Department just announced a potentially game-changing initiative to pilot a free, direct tax filing system next year. If this pilot is successful, many taxpayers will be able to fill out and file their tax returns with the IRS, rather than only having the option to rely on software developed by private companies.

Though it will not involve “pre-filled returns” using the information the IRS has — an option that is worth considering over the long-term — this is a meaningful step towards providing millions with a free and easy option to file their taxes after years of failure relying only on private companies.