The IRS is moving forward with a plan to develop its own free tax filing program.
The pilot version, known as Direct File, will be available next year to select taxpayers in 13 states, including New York.
While the online pilot program will have limited scope initially, it could serve as an alternative to private tax preparation companies.
The IRS anticipates the participation of several hundred thousand taxpayers in the program.
This initiative will help the IRS evaluate the feasibility of offering a government-run tax filing system to a broader audience in the future.