"IRS Launches Free Tax-Filing Program in 12 States: What You Need to Know"
The IRS has launched Direct File, a free tax filing program, in 12 pilot states, aiming to cover about one-third of tax situations for 19 million taxpayers. The program is designed for simple tax situations and is expected to save the average filer $160 per year within five years. However, it has faced pushback from the private tax filing industry and some Republicans, who have questioned the agency's authority to create the program. Eligible taxpayers can use Direct File for straightforward returns with limited types of income, credits, and deductions, but it does not support state returns.