The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced today that Wisconsin will join IRS Direct File for Filing Season 2025. This development, enabled by President Biden’s Inflation Reduction Act, will allow more than 600,000 Wisconsinites to utilize a free online tax filing tool next year.
Following a successful pilot program in 12 states, which saw 140,000 taxpayers claim over $90 million in refunds and save approximately $5.6 million in filing costs, Treasury and the IRS decided to make Direct File a permanent offering. Wisconsin joins other states like Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, and North Carolina in adopting this system.
"Thanks to President Biden’s Inflation Reduction Act, more than 600,000 Wisconsin taxpayers will be able to file their taxes online for free," stated U.S. Secretary of the Treasury Janet L. Yellen. "Direct File will save Wisconsinites time and money and help ensure they receive the tax benefits they are owed."
Governor Tony Evers expressed similar sentiments: “Thanks to the efforts of our federal partners like Sen. Baldwin and the Biden-Harris Administration, next year, Wisconsin taxpayers will be able to file their taxes securely, easily, and for free directly with the IRS with no surprise fees through the new Direct File Program.”
Senator Tammy Baldwin also commented on the initiative: “Filing your taxes should be easy and free... I voted for the Inflation Reduction Act to put money back into the pockets of hardworking families."
The goal of Treasury is to expand Direct File's reach nationwide in future years as part of broader efforts by the Biden-Harris Administration to enhance customer service using resources from the Inflation Reduction Act. The initiative also aligns with an objective from the IRS’s Strategic Operation Plan (SOP) aimed at ensuring eligible taxpayers receive pertinent tax credits such as Child Tax Credit and Earned Income Tax Credit.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
President Biden’s Inflation Reduction Act required a study on an IRS-run Direct e-File System allowing free tax filing directly with the IRS. After positive findings showing strong taxpayer interest in such an option, a pilot was initiated during Filing Season 2024.
In its initial phase across 12 states for simple tax situations, more than 140,000 Americans filed successfully within five weeks post-extensive product testing. These filers claimed significant refunds while saving millions in preparation fees.
User feedback was highly positive; according to a GSA Touchpoints survey involving over 11,000 participants, 90 percent rated their experience as “Excellent” or “Above Average.” Many users who had previously paid for tax preparation appreciated that Direct File remained entirely free without hidden charges or upselling attempts.
Taxpayers found Direct File straightforward and valued its educational features regarding various tax situations and deductions. They also felt confident about filing directly with the IRS due to ease in correcting mistakes promptly.
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