WASHINGTON (NEXSTAR) – The IRS commissioner says new funding from Congress should make this tax filing season easier.
The IRS is testing a new online tax filing software this year.
Starting in March, taxpayers in 12 states will be able to use the new tool to file simple returns directly with the federal government–for free.
“Currently, the main option that taxpayers have to work with is a commercial software to determine if you’re eligible to file free though them, and that option will still exist…this new option will be to come directly to the IRS.” says IRS Commissioner Danny Wertel.
Susan Harley, of government watchdog group Public Citizen, calls the new pilot program good news for taxpayers.
“Right now, we have profit hungry corporations. They stand to make a buck off keeping taxes complicated,” says Harley.
Harley says tax preparation companies have been caught illegally collecting and selling personal data or steering customers away from free services-to similar services that cost money.
“They stand to make a buck off making taxes complicated,” she added.
Ted Rossman, a financial analyst with Bankrate, says the IRS seems to be moving in the right direction by embracing technology.
He encourages Americans to file their taxes online to ensure a swift process. He also says this year’s refunds could be larger.
“Especially for people who’s income may not have kept up with inflation,” says Rossman.
He says the IRS has adjusted its tax brackets to account for inflation so you might owe less this year than last.
The filing deadline in most states is April 15th.
The states eligible for the new filing system are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.