IRS Cements Direct File as Option to H&R Block, TurboTax (1)

The IRS is making its Direct File free electronic filing tool a permanent choice for future tax seasons, the agency said Thursday.

The government-run option was piloted this filing season for low- and moderate-income taxpayers with simple returns in a dozen states. It was created after the Democrats’ 2022 tax-and-climate law set aside $15 million for the IRS to study the feasibility of creating such a tool.

The expansion comes in the face of opposition from the tax-prep industry and Republican lawmakers, who call the government-run tool unnecessary and costly when taxpayers already have options such as Intuit’s TurboTax and ...