The IRS is planning to test a free, electronic tax-filing system in 13 states early next year 

The agency expects hundreds of thousands of taxpayers to participate in this limited rollout 

The goal of this initiative is to help Americans save money on tax-preparation services, which cost about $11 billion annually 

The IRS' direct-filing platform will first be introduced in states such as Arizona, California, Massachusetts, and New York 

In addition to these states, residents of nine other states without income tax might also have access to the pilot program 

These nine states are Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming 

The IRS program is a result of the Inflation Reduction Act, which allocated $80 billion in funding to the agency and tasked it with exploring the feasibility of offering a free tax-filing system 

The rollout of the program is planned to follow a gradual, incremental approach, similar to private-sector product launches 

The IRS intends to collaborate with nonprofit organizations, congressional offices, and states to identify eligible taxpayers based on their income, tax credits, and deductions 

This trial is part of the IRS's efforts to provide taxpayers with more options for filing their taxes and to transform the agency