IRS testing free tax filing system to compete with Turbo Tax, H&R Block and more

IRS testing free tax filing system to compete with Turbo Tax, H&R Block and more

The Internal Revenue Service is testing its own free online tax filing system in a move that could put the agency in direct competition with preparers such as Turbo Tax and H&R Block.

Citing sources, the Washington Post reported the IRS has already built a prototype of the system that will launch to a small group of users in January. Building of the prototype was funded through $15 million from last year’s Inflation Reduction Act.

The system would be free but would also fill out some tax-related information for the user.

Currently, the IRS Free File direct users to commercial providers through an existing public-private partnership. It is only available, however, to those making $73,000 or less a year. Free File does not auto complete any of the financial information but does provide free filing for most state taxes.

You can read more here.