IRS recently opened Direct File to all 50 states after successful pilot; Virginia participation requires further action by Youngkin Administration and General Assembly

Members of Virginia’s congressional delegation announced today that they have written to Governor Glenn Youngkin urging him to take the necessary steps to allow Virginians the option of using the IRS Direct File program to file their future tax returns. The Treasury Department piloted Direct File for 2023 returns in a smaller group of states, which did not include Virginia, with strong positive feedback from – and savings for – U.S. taxpayers who took advantage of the program. IRS recently announced that it would open participation to all 50 states. Virginia’s full participation will require further actions by the Governor’s administration in concert with the General Assembly.

Rep. Don Beyer, Senators Mark Warner and Tim Kaine, and Reps. Bobby Scott, Abigail Spanberger, Gerry Connolly, Jennifer Wexton, and Jennifer McClellan wrote:

“On May 30th, the Department of Treasury and Internal Revenue Service (IRS) announced that Direct File, a free tax filing tool operated by Treasury and the IRS, will continue as a permanent option for taxpayers. All 50 states are invited to partner with the IRS to provide Direct File as an option to their residents next year. We urge you to take the necessary steps to provide Virginia taxpayers with the option to use this service in the future.

“The IRS piloted a Direct File program during Filing Season 2024. The pilot allowed taxpayers with simple tax situations in 12 states to file taxes for free, directly with the IRS. The results of the pilot indicate the program was well received by taxpayers. 140,803 taxpayers utilized the tool to claim more than $90 million in refunds and save an estimated $5.6 million in tax preparation fees. For Filing Season 2025, the IRS is working to broaden the base of taxpayers eligible for Direct File by including more complex tax situations and inviting all 50 states to participate.

“Virginia taxpayers deserve access to this free and simple filing option. For many, the tax filing season can be time consuming, expensive, and confusing, even though most taxpayers have relatively simple returns… Virginians should have the same opportunity to access Direct File as they do any other taxpayer assistance program offered by the IRS.

“We ask that your administration work with the IRS, the Treasury Department, and the General Assembly to take the necessary steps for Virginia to join the program as soon as possible. Our offices stand ready to assist in this effort to expand filing options for Virginians.”