US taxpayers will soon have a far easier way to file their taxes with the Internal Revenue Service set to launch its brand new free online tax filing portal this coming March.
According to the IRS, the Direct File system will offer free Federal tax file returning, step-by-step guide, real-time online support, and language support for both English and Spanish.
As of writing, only 12 states are eligible to participate in the program as the agency gears up to expand its operations. The program will also only be available to people with W2 income and above.
The IRS said it will phase in more taxpayers, including several private sectors, soon in February and March. No exact date has been given yet when the portal will open to the public.
The tax filing season has been announced to start on Jan. 29, Monday.
IRS Ramps Up Enforcement Efforts for High-Paying Taxpayers
The Direct File portal is only one of the many upcoming programs the IRS is set to roll out this year after receiving a new budget from the Inflation Reduction Act.
The portal itself is under the $4.8 billion funding towards the Business Systems Modernization project, a massive investment decision by both Democrats and Republicans.
The IRS earlier said that it is modernizing its operations with "cutting-edge technology" over the next decade.
Majority of the focus on the new funding will be allotted to increase effort in ensuring that high-paying taxpayers pay their dues.
While the IRS is planning to implement the program for small businesses at first, it plans to scale operations design soon.
Concerns Raised Over New IRS Website
It is not new that the IRS website is vulnerable to data leaks and breaches.
The agency's website have been hacked before in 2015 in which personal data from over 700,000 taxpayers have been stolen.
Later in 2022, the agency accidentally leaked the names and business contact information of thousands of taxpayers to the public.
It is uncertain what improvements the IRS made on the new website to prevent the same incidents from happening again.
Related Article : Data of Thousands of Taxpayers Compromised Due to IRS Mistake
