RICHMOND, Va. — Virginia will not join the IRS Direct File program, according to a letter from Gov. Glenn Youngkin.
In the letter, Youngkin explains that Virginia will not participate due to the costs involved and the need for a legislative change to authorize the program. He also mentions legal concerns raised by Virginia’s Attorney General, Jason Miyares, about the IRS’s new program.
Youngkin’s letter states that while Virginia is open to exploring new tax filing options, Direct File presents several issues. The current law does not support this approach, and changes would require approval from the General Assembly. Additionally, Virginia’s outdated tax processing system would need replacement to comply with the new program.
Youngkin had proposed $150 million for updating the system, but this funding was not included in the final state budget. Implementing Direct File changes would cost an extra $1.5 million, while replacing the system could cost $24 million over four years.
Legal questions about the IRS program, highlighted by state attorneys general, remain unresolved. Concerns have been raised about the IRS’s authority and its ability to provide adequate customer service and tax advice.
Youngkin’s letter was sent to several Senate Democrats and representatives, indicating that while Virginia cannot participate this season, future involvement could be possible if the program is authorized and funded properly.