The IRS recently announced a pilot initiative for its Direct File program set to roll out to 13 states for the 2024 tax season.
The program is being presented as a mobile-friendly, interview-based online service that aims to simplify the filing process while reducing associated costs. Additionally, it should allow many taxpayers to avoid the minefield of for-profit tax preparation software.
If tax prep giants want to remain relevant, they need to provide value-add services—reviewing calculations for accuracy, automating error-checking, providing audit defense services, resolving disputes, and assisting with complex tax situations not supported by Direct File.
The for-profit ...