The IRS plans to extend invitations to taxpayers from 13 states, including South Dakota to participate in a trial for an electronic free file tax return system beginning in January.
The pilot program Direct File will be available to select taxpayers in those 13 states next year.
The goal is for the IRS tax filing system to become an alternative to the often costly programs from private tax preparation companies, with an estimated participation of hundreds of thousands of taxpayers for the limited 2024 trial run.
However, this move has drawn opposition from some private tax preparation companies, which have profited greatly from their software fees … with one spokesperson claiming that a free, government-run program could cause problems for some taxpayers.
”Just like anything technological though. It’s going to have its hiccups. It’s going to have its mess ups and they’re going to still have taxpayers who are confused or enter something in that’s not correct, and ended up having to still come to us or a tax professional to get seek advice,” said Liberty Tax Manager Shelby Dahl.
If you are self-employed and need to file a 1099, you won’t be eligible for the free tax filing system.
