The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced today that New Mexico will join IRS Direct File for Filing Season 2025. This initiative, made possible by President Biden’s Inflation Reduction Act, aims to enhance customer service and ensure taxpayers claim eligible benefits and deductions.
Following a successful pilot program in 12 states, where 140,000 taxpayers claimed over $90 million in refunds and saved approximately $5.6 million in filing costs using the free online tool, the Treasury and IRS have decided to expand Direct File as a permanent offering. New Mexico is now the fourth new state to adopt this system after Oregon, New Jersey, and Pennsylvania. More than 200,000 New Mexicans will be eligible to use this free tool next Filing Season.
“Thanks to President Biden’s Inflation Reduction Act, more than 200,000 New Mexico taxpayers will be able to file their taxes online for free directly with the IRS this coming Filing Season,” said U.S. Secretary of the Treasury Janet L. Yellen. “Direct File will save New Mexicans time and money and help ensure they receive the tax benefits they are owed.”
“This collaboration with the IRS will simplify the tax filing process for New Mexicans,” stated Governor Michelle Lujan Grisham. “The Direct File program empowers taxpayers with a free, reliable, and efficient way to manage their federal and state tax filings.”
“In May, I pushed the IRS to expand its Direct File program to make filing taxes free and easy for more working families,” said Senator Martin Heinrich. “I’m pleased the IRS listened to our calls and have now made this successful program available to New Mexicans.”
Representative Melanie Stansbury (NM-01) remarked on the significance of this development: “Creating a way for New Mexicans to file their taxes directly with the IRS and online for free is a huge step in easing the stress of tax season for people in my district.”
The Treasury Department aims to extend Direct File’s reach nationwide in future years as part of its efforts under President Biden’s Inflation Reduction Act resources. The initiative also aligns with one of the goals of the IRS’s Strategic Operation Plan (SOP), which is ensuring that taxpayers receive all eligible credits such as Child Tax Credit and Earned Income Tax Credit.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
The average American spends $270 and 13 hours filing their taxes according to a Taxpayer Burden Survey. The Inflation Reduction Act mandated an examination into an IRS-run Direct e-File System allowing taxpayers to file directly with no cost involved.
During Filing Season 2024, Direct File was accessible for simple tax situations across 12 states. Over five weeks following extensive product testing, more than 140,000 Americans utilized it successfully.
A GSA Touchpoints survey revealed high satisfaction among users; 90 percent rated their experience as “Excellent” or “Above Average.” Users appreciated features like straightforward navigation through different tax situations without hidden fees or upselling attempts.
Taxpayers reported confidence in filing directly with the IRS due to ease of correcting mistakes quickly while ensuring accurate submissions.
###
