The IRS is making its free tax-filing platform permanent and open to all 50 states

The IRS is making its free tax-filing platform permanent and open to all 50 states.

An IRS-run system that allows households to file their federal tax returns online for free is here to stay, after the agency let taxpayers test the platform earlier this year.

The IRS is making its Direct File platform a permanent option for taxpayers to file their federal tax returns and is inviting all 50 states and the District of Columbia to participate during next year’s filing season.

This year, a dozen states opted into the Direct File pilot. More than 140,000 taxpayers used the platform to file their federal tax returns, surpassing the IRS’s goal of 100,000 users. About 19 million taxpayers living in those 12 states were eligible to use Direct File this year.

IRS Commissioner Danny Werfel told reporters on Thursday that taxpayers who used Direct File generally spent less than an hour filing their tax returns, with many completing their returns in as little as 30 minutes.

“The clear message is that many taxpayers across the nation want the IRS to provide options for filing electronically at no cost,” Werfel said.

The IRS has been gathering feedback from Direct File pilot users and other interested parties to decide whether to scale up the project. The agency heard from more than 100 members of Congress and dozens of community groups and nonprofits about the Direct File pilot.

“We took the time to get it right, and found the right first step to test the demand and user experience, and build a strong product. We will apply that same critical lesson next year as we take a strategic approach to expanding Direct File’s availability and capabilities,” Werfel said.

Nearly half of Direct File users reported paying for tax preparation last year. The IRS estimates the average American spends $270 and 13 hours filing their taxes each year.

Taxpayers who participated in the pilot received more than $90 million in refunds and saved about $5.6 million in filing costs.

The IRS developed the Direct File platform with help from the White House’s U.S. Digital Service, the General Services Administration’s 18F team, and private-sector partners.

In a GSA-led survey of more than 11,000 Direct File users, 90% of respondents rated their experience with the platform as “excellent” or “above average.”

Werfel said Direct File will remain “one option among many,” and that taxpayers can always choose how they prefer to file their taxes.