IRS Explores Free Online Tax Filing with Pre-Populated Returns

The IRS is set to test a free online direct filing system for some taxpayers during the 2024 filing season, but pre-populated returns with certain details already filled in are not part of the initial plan. However, a 2022 working paper from the National Bureau of Economic Research suggests that the IRS may have the future ability to pre-populate nearly half of tax returns, covering 41% to 48% of taxpayers. Pre-populated tax returns are common abroad, but there are organizational and operational challenges to consider for any new project.