The IRS said taxpayer participation will also be limited by the types of income, tax credits and deductions that the product can initially support. The pilot will start with a small group of taxpayers will the program available to more as the season progresses.

The pilot will be available in nine states that do not have state income taxes: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. Arizona, California, Massachusetts and New York have agreed to integrate their state taxes into the Direct File pilot. 

Washington will participate for the state's application of the Working Families Tax Credit.

The IRS anticipates specific income types, such as wages on a Form W-2, and tax credits, like the Earned Income Tax Credit and the Child Tax Credit, will be covered by the pilot.