Comment More, please (Score 2) 34
IRS stated through the GAO that the combined costs to develop and run this initial pilot ran about $25 million**. That's pretty steep, but doesn't seem particularly egregious for essentially breaking into and disrupting an entrenched industry. The running costs for Direct File were estimated at $2.4 million**, which will certainly go up as/if the program expands, but so will the amount of revenue diverted from tax preparers.
** These numbers are disputed. According to a GAO report, there were a number of additional costs that should have been included, particularly costs related to the Direct File pilot incurred by the US Digital Service (USDS, a technology unit that is part of the Executive branch of the government) that were not required to be reimbursed from IRS. USDS developed the prototype that was eventually developed into the Direct File program and also loaned 29 staff to the IRS to assist with building and running Direct File)
GAO report about IRS Direct File