IRS reopens Direct File user testing after pause

The Internal Revenue Service is reopening access Tuesday to its Direct File free online tax preparation system after temporarily closing it to new users who want to pilot test the program.

“Direct File will reopen to new users today starting at 5 p.m. EST to continue to test various aspects of the service,” said an IRS official in a statement Tuesday. “When this availability window opens, new users in the 12 pilot states will be able to start their returns. After the availability window closes to new users, taxpayers who have started a return can continue using Direct File even during planned pauses.”

The IRS noted that starting at 5:00 p.m. ET today, a message at the top of directfile.irs.gov will indicate that Direct File is open to new users, and when the availability window closes, the message will indicate that Direct File is no longer open to new users.

If taxpayers who are interested in Direct File miss the open availability window, they can check their eligibility and sign up for ID.me, the third-party authentication service used by the IRS for online accounts, to be ready when the next window opens for new users to start their returns. Interested taxpayers can find out if they’re eligible for Direct File at directfile.irs.gov and can sign up to receive regular email updates with the latest information on the pilot.

The IRS began pilot testing the Direct File system in 12 states as a way for taxpayers to file their taxes for free online. Last week, the agency expanded the pilot from internal testing with a group of IRS employees in those states into a public testing phase with members of the public who want to try it out. However, the system is mostly limited to the kind of income that’s reported on a W-2 form, as well as unemployment compensation, Social Security benefits and interest of $1,500 or less, and taxpayers who claim the standard deduction rather than itemizing.

The 12 states where it will be available include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.