On January 27, 2025, Virginia lawmakers introduced House Bill 2264, a significant legislative proposal aimed at enhancing taxpayer services through the establishment of a state-level Direct File Program. This initiative seeks to align Virginia's tax filing processes with the federal IRS Direct File Program, which is set to begin in the 2028 tax year.

The bill outlines several key provisions. Firstly, it mandates the Virginia Tax Commissioner to create and implement a Direct File Program for state income taxes, starting with taxable years after January 1, 2028. The program is designed to facilitate a more streamlined and user-friendly tax filing experience for Virginia residents. Additionally, the bill emphasizes the importance of coordinating with the IRS to ensure that the state program is compatible, secure,