IRS Direct File Error Rates On Par With Rivals, Watchdog Finds

March 24, 2025, 5:22 PM UTC

The IRS’s free electronic tax filing tool, known as Direct File, last year had similar or lower error and identify theft rates as commercial software, a watchdog report found.

The tool has been a political football in Washington since it was created by Democrats. Republicans in Congress have vowed to end it though Treasury Secretary Scott Bessent committed to keeping it in place this season. He didn’t promise it would stick around in future tax years.

The Treasury Inspector General for Tax Administration report found that of the 423,450 taxpayers who created or signed in to an account during its ...

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