The Internal Revenue Service (IRS) has extended its Free File program through 2029, ensuring continued access to free federal tax filing services for millions of Americans. This extension maintains the IRS's collaboration with a coalition of private tax software companies, which facilitates free tax filing for eligible taxpayers.

This tax season, the Free File program processed approximately 2.9 million returns by May 11, marking a 7.3% increase compared to the same period last year, according to the IRS. This growth reflects the program's ongoing utility and popularity among taxpayers.

Ken Corbin, Chief of IRS Taxpayer Services, emphasized the program's longstanding benefits, stating, “Free File has been an important partner with the IRS for more than two decades and helped tens of millions of taxpayers. This extension will continue that relationship into the future.” Corbin also highlighted that this multi-year agreement would provide certainty for private-sector partners to assist with their future Free File planning.

IRS Free File remains accessible through the federal tax extension deadline on October 15. For the 2023 tax year, the program is available to taxpayers with an adjusted gross income (AGI) of $79,000 or less, an increase from the previous threshold of $73,000 in 2022. Additionally, Fillable Forms are available for taxpayers at all income levels, providing a broad spectrum of assistance for various financial situations.

The IRS's commitment to the Free File program aligns with its broader strategy to improve taxpayer services and ensure equitable access to tax filing assistance. By partnering with private tax software companies, the IRS leverages advanced technologies and user-friendly interfaces, making the tax filing process more accessible and efficient for millions of Americans.

In related developments, the IRS announced approximately one month ago the success of its Direct File pilot program. This initiative offers certain taxpayers in 12 states a free filing option directly through the IRS. During the recent tax season, more than 140,000 taxpayers utilized IRS Direct File, saving an estimated $5.6 million in tax preparation fees for federal returns. This pilot program represents a significant step towards expanding the range of free filing options available to taxpayers and reducing their reliance on paid tax preparation services.

IRS Commissioner Danny Werfel mentioned that the agency plans to decide on the future of the Direct File program later this spring. This decision will be informed by feedback from a diverse array of stakeholders, ensuring the program's continued relevance and effectiveness in serving taxpayers. The potential expansion of the Direct File program could further democratize access to tax filing services, providing an essential public good.

The extension of the Free File program and the potential expansion of the Direct File initiative underscore the IRS’s commitment to providing accessible, cost-effective tax filing solutions. These programs not only help reduce the financial burden on taxpayers but also streamline the tax filing process, making it more efficient and user-friendly. The IRS’s proactive measures to enhance these programs reflect its dedication to meeting the evolving needs of taxpayers in a rapidly changing digital landscape.

Furthermore, these initiatives highlight the importance of public-private partnerships in delivering essential services to the public. By collaborating with private tax software companies, the IRS can harness innovation and technological advancements to improve taxpayer experiences and outcomes. This approach ensures that the IRS can continue to provide high-quality services while adapting to new challenges and opportunities in the tax filing ecosystem.

As the IRS continues to refine and expand its Free File and Direct File programs, it remains committed to promoting taxpayer education and awareness. Ensuring that more Americans are aware of these free filing options and understand how to access them is crucial for maximizing their impact. Through targeted outreach and education efforts, the IRS aims to empower taxpayers to take full advantage of these valuable resources.