IRS Explores Online Tax Filing Options, Including Free Pilot Program.
The IRS plans to test a government-run filing system that would allow taxpayers to file directly with the government online for free, bypassing commercial options such as TurboTax. However, the $14 billion tax-preparation industry is expected to oppose the plan. The IRS estimates that setting up and operating a direct file system would cost the government between $64 million and $249 million annually, depending on the number of users and the complexity of returns it could handle. The next step is to let some real taxpayers try using the system next year.