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Claiming high user satisfaction, IRS will decide on renewing free tax site
In the first year, more than 140,000 households in 12 states did their taxes with Direct File.
But a senior Treasury Department official, who answered reporters’ questions about the program on Friday on the condition of anonymity, said that the Biden administration would make a decision in the coming weeks about whether to renew the software for the next tax filing season. Werfel promised a more detailed report on costs, and interviews with taxpayers, state officials, and software companies, before a decision is made on whether to renew the program. When Werfel testified at a Senate Finance Committee hearing earlier this month, Republican committee leader Sen. Mike Crapo of Idaho called Direct File “wasteful and duplicative.” Sen. Thom Tillis (R-N.C.) questioned Werfel about the full costs of the program, saying, “I for one hope … at some point you just decide it’s not worth it, because the private sector options are so much better.”
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