Inflation Reduction Act: Interim Results of the Direct File Pilot

On February 14, 2024, we alerted the Chief, Direct File, of our concern that the eligibility checker was not clear for individuals who needed to file a Form 8962. Specifically, taxpayers would not understand that they were not eligible to use Direct File based on the information in the eligibility checker related to health insurance coverage. We recommended that the IRS take steps to reduce taxpayer confusion by updating the eligibility checker to clarify eligibility for taxpayers who may have purchased insurance through a marketplace anytime during Tax Year 2023.

On February 16, 2024, we notified the Chief, Direct File, of our concern that the Spanish translation for the Direct File eligibility checker was missing information. We recommended that the IRS update the eligibility checker to include the missing text identified for the Spanish version and ensure that any future changes made to the Direct File eligibility checker are also updated for all available languages.

On February 7, 2024, we notified the Chief, Direct File, of our concerns that the IRS did not identify quantifiable metrics that would allow the Direct File team and IRS leadership to determine when to move forward between phases and demonstrate continuous improvement. We recommended that the IRS establish numerical benchmarks for the targets and indicators that lend themselves to being measured.