IRS free tax system moves into public test phase

The Internal Revenue Service's Direct File pilot program has expanded beyond internal testing of its free tax preparation system to taxpayers in a dozen states.

The IRS began internal pilot testing of the system earlier this month with a group of IRS employees in the states where it will be available this tax season. The IRS reported that it has now expanded the pilot test to taxpayers in the dozen states where it's available. 

"After a successful internal testing phase, the pilot is moving into the next phase of testing. In the coming days," said an IRS official in a statement Wednesday. "Direct File will be available to the public in 12 pilot states for short, unannounced windows of time. The purpose of this phase is to test Direct File with the public and ensure it works well when experiencing heavier volume than in the internal testing phase."

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. 

"When an availability window opens, new users will be able to start their returns," stated the IRS official. "After the availability window closes to new users, taxpayers who have started a return can continue using Direct File even during planned pauses."

A message at the top of the directfile.irs.gov web page will indicate whether Direct File is open or closed to new users. "At any point during this phase, anyone attempting to access the website but is unable to start their return should not worry," said the IRS official. "This is the pilot progressing as intended."

If taxpayers who are interested in trying out the pilot program miss a window for new users, they can check their eligibility and sign up for ID.me, the third party verification service used by the IRS for online accounts, so they can be ready for the next availability window for new users to start their returns with Direct File.

Dates and times for these availability windows can change as this phase of testing progresses, the IRS official cautioned. The IRS plans to continue to provide updates as the Direct File pilot moves through the testing phase.