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With one week until the April 15 federal tax deadline, the IRS has released an “important update” for Direct File, the agency’s free tax filing program.
Since March 12, the pilot program has been fully open for certain filers in 12 states, and Direct File now allows users to import key details needed to verify returns before filing.
When e-filing your taxes, you validate your return before filing by inputting the previous year’s adjusted gross income or the prior year’s temporary pin. Tax software typically adds this info for returning customers, but first-time users must add it manually.
This key step has been the main issue preventing Direct File returns from being successfully filed, according to a Treasury official.
But as of Monday, Direct File users can now import these verification details from the IRS, which could minimize the common error. Taxpayers can only access details from their own IRS account, which has identity verification, a Treasury official said.
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“This important update will allow Direct File users to take advantage of information the IRS already has to simplify the filing process even further,” said Bridget Roberts, who leads Direct File at the IRS.
Direct File will remain open for rejected returns until April 20, a Treasury official said.
Who qualifies for the Direct File pilot
Another common reason for abandoned Direct File returns has been tax situations not covered by the pilot, such as Forms 1099, according to a Treasury official.
“Direct File eligibility is limited to those with simple tax returns this filing season,” Deputy Secretary of the Treasury Wally Adeyemo said during a press call in March. “But a large percentage of Americans qualify.”
The IRS Direct File pilot states include Arizona, California, Florida,…
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