The new free online tax filing program from the IRS is now moving beyond its initial tranche of pilot states without an income tax.
The IRS said Friday it has begun implementing the test phase of the program in Arizona, New York and Massachusetts — all states with an income tax. The test pilot will be carried out in a total of 12 states.
Arizona has a flat income tax of 2.5 percent, Massachusetts has a 5 percent income tax, and New York has a progressive income tax, meaning it increases for taxpayers who make more money.
“Internal testing continues, with additional testing underway to ensure Direct File is successfully integrated with state systems,” IRS direct file chief Bridget Roberts said in a statement released Friday.
The IRS said in a statement last week that more than a dozen taxpayers from an initial testing group of 1,200 had participated in the testing program.
“Early users report satisfaction with Direct File and the customer service representatives they have interacted with via live chat. First filers have indicated that Direct File is straightforward and easy to use, and many have successfully filed their taxes in less than 30 minutes,” the IRS said in a statement.