Razer has to pay over $1.1 million to the Federal Trade Commission to settle complaints that it advertised its infamous Zephyr masks as N95-grade when it didn't get them certified at all. The gaming peripheral maker released Zephyr, its high-tech face mask with built-in RGB lighting, during the height of the pandemic. Half a year later, in early 2022, it introduced a "Pro" version that added voice amplification. Razer said back then the Zephyr was as effective as an N95 mask, but it later reneged on its claim and removed all references to "N95-grade" filters from its website and other marketing materials after it came out that the company didn't obtain proper certification.
According to the FTC, Razer never submitted the Zephyr masks for testing to the FDA or the National Institute for Occupational Safety and Health (NIOSH), which gives out the official certification for masks that filter out 95 percent of airborne particles. Razer certainly isn't in the list of companies that manufacture N95 masks approved by NIOSH on its website. In the FTC's complaint, it accused Razer of only stopping its false advertising after consumer outrage.
The company has to hand over what it earned from selling Zephyr — that's $1,071,254.33 in revenue — to the FTC, which the agency will then use to refund affected consumers. To note, the Zephyr masks cost customers at least $100. It will pay $100,000 in fine over its unsubstantiated health claims, as well. In addition to ordering Razer refund customers, the FTC also prohibited the company from making any claims that it's selling products that reduce the likelihood of being infected with or transmitting the COVID-19 virus without proper FDA approval. Razer has also been prohibited from claiming health benefits for its products without scientific evidence to support them, as well as from "falsely claiming that any product meets government-established standards when it has not."
This article originally appeared on Engadget at https://www.engadget.com/razer-will-refund-zephyr-mask-buyers-due-to-bogus-n95-claims-083127094.html?src=rss
Razer has to pay over $1.1 million to the Federal Trade Commission to settle complaints that it advertised its infamous Zephyr masks as N95-grade when it didn't get them certified at all. The gaming peripheral maker released Zephyr, its high-tech face mask with built-in RGB lighting, during the height of the pandemic. Half a year later, in early 2022, it introduced a "Pro" version that added voice amplification. Razer said back then the Zephyr was as effective as an N95 mask, but it later reneged on its claim and removed all references to "N95-grade" filters from its website and other marketing materials after it came out that the company didn't obtain proper certification.
According to the FTC, Razer never submitted the Zephyr masks for testing to the FDA or the National Institute for Occupational Safety and Health (NIOSH), which gives out the official certification for masks that filter out 95 percent of airborne particles. Razer certainly isn't in the list of companies that manufacture N95 masks approved by NIOSH on its website. In the FTC's complaint, it accused Razer of only stopping its false advertising after consumer outrage.
The company has to hand over what it earned from selling Zephyr — that's $1,071,254.33 in revenue — to the FTC, which the agency will then use to refund affected consumers. To note, the Zephyr masks cost customers at least $100. It will pay $100,000 in fine over its unsubstantiated health claims, as well. In addition to ordering Razer refund customers, the FTC also prohibited the company from making any claims that it's selling products that reduce the likelihood of being infected with or transmitting the COVID-19 virus without proper FDA approval. Razer has also been prohibited from claiming health benefits for its products without scientific evidence to support them, as well as from "falsely claiming that any product meets government-established standards when it has not."
This article originally appeared on Engadget at https://www.engadget.com/razer-will-refund-zephyr-mask-buyers-due-to-bogus-n95-claims-083127094.html?src=rss
The European Union (EU) has opened a second formal investigation into TikTok and has accused the platform of running afoul of the region’s Digital Services Act (DSA), according to a report by TechCrunch. The probe involves the addictive nature of TikTok Lite, which is a smaller version of the app that takes up less memory on a smartphone and was built to perform over slower internet connections.
TikTok Lite launched earlier this month in France and Spain and includes a design aspect that allows users to earn points by watching and liking videos. These points can be exchanged for stuff like Amazon vouchers and TikTok’s proprietary digital currency, which is typically used to tip creators. The EU’s Commission has expressed concern that this type of "task and reward" design language could impact the mental health of young users by "stimulating addictive behavior.”
The Commission hasn’t yet confirmed any breaches of the DSA, but has suggested that it might impose temporary measures to force parent company ByteDance to suspend TikTok Lite in the EU while it continues the investigation. The company has until April 24 to argue against these potential measures, so the app’s still available for EU residents. However, ByteDance failed to provide the EU with a risk assessment document regarding TikTok Lite after being asked last week.
This failure to comply with the DSA could open the company up to steep penalties of up to one percent of its total annual income and periodic penalties of up to five percent of daily income. The Commission hasn’t indicated if it plans on issuing these fines as the investigation continues.
"We suspect TikTok Lite could be as toxic and addictive as” light cigarettes, Thierry Breton, the commissioner for the EU Internal Market, wrote in a press release announcing the probe. “We will spare no effort to protect our children."
ByteDance has yet to respond to the investigation and the potential of TikTok Lite being banned in the EU. This latest inquiry follows a more comprehensive probe issued back in February. That wide-ranging investigation focuses on addictive algorithms, age verification issues, default privacy settings and ad transparency.
February’s probe is ongoing, but ByteDance was already forced to make concessions to allow TikTok to operate in the EU. The company had to give users the choice to disallow algorithms from powering the For You Page and instituted new harmful content reporting options. It also suspended personalized ads for EU users aged 13 to 17.
As for America, the controversial TikTok ban keeps inching closer to reality. The US House of Representatives tucked a revised version of the bill into this weekend’s foreign aid package. Under this new proposed legislation, ByteDance would have one year to sell off TikTok before it would be banned from app stores. It’s now heading to the Senate and will likely be voted on this week. However, it remains to be seen if the Senate will even keep the stuff about TikTok in the foreign aid package. President Biden has previously said he would support a TikTok ban if Congress passes it.
This article originally appeared on Engadget at https://www.engadget.com/the-eu-opens-an-investigation-into-tiktok-lite-citing-addiction-concerns-180025326.html?src=rss
The European Union (EU) has opened a second formal investigation into TikTok and has accused the platform of running afoul of the region’s Digital Services Act (DSA), according to a report by TechCrunch. The probe involves the addictive nature of TikTok Lite, which is a smaller version of the app that takes up less memory on a smartphone and was built to perform over slower internet connections.
TikTok Lite launched earlier this month in France and Spain and includes a design aspect that allows users to earn points by watching and liking videos. These points can be exchanged for stuff like Amazon vouchers and TikTok’s proprietary digital currency, which is typically used to tip creators. The EU’s Commission has expressed concern that this type of "task and reward" design language could impact the mental health of young users by "stimulating addictive behavior.”
The Commission hasn’t yet confirmed any breaches of the DSA, but has suggested that it might impose temporary measures to force parent company ByteDance to suspend TikTok Lite in the EU while it continues the investigation. The company has until April 24 to argue against these potential measures, so the app’s still available for EU residents. However, ByteDance failed to provide the EU with a risk assessment document regarding TikTok Lite after being asked last week.
This failure to comply with the DSA could open the company up to steep penalties of up to one percent of its total annual income and periodic penalties of up to five percent of daily income. The Commission hasn’t indicated if it plans on issuing these fines as the investigation continues.
"We suspect TikTok Lite could be as toxic and addictive as” light cigarettes, Thierry Breton, the commissioner for the EU Internal Market, wrote in a press release announcing the probe. “We will spare no effort to protect our children."
ByteDance has yet to respond to the investigation and the potential of TikTok Lite being banned in the EU. This latest inquiry follows a more comprehensive probe issued back in February. That wide-ranging investigation focuses on addictive algorithms, age verification issues, default privacy settings and ad transparency.
February’s probe is ongoing, but ByteDance was already forced to make concessions to allow TikTok to operate in the EU. The company had to give users the choice to disallow algorithms from powering the For You Page and instituted new harmful content reporting options. It also suspended personalized ads for EU users aged 13 to 17.
As for America, the controversial TikTok ban keeps inching closer to reality. The US House of Representatives tucked a revised version of the bill into this weekend’s foreign aid package. Under this new proposed legislation, ByteDance would have one year to sell off TikTok before it would be banned from app stores. It’s now heading to the Senate and will likely be voted on this week. However, it remains to be seen if the Senate will even keep the stuff about TikTok in the foreign aid package. President Biden has previously said he would support a TikTok ban if Congress passes it.
This article originally appeared on Engadget at https://www.engadget.com/the-eu-opens-an-investigation-into-tiktok-lite-citing-addiction-concerns-180025326.html?src=rss
SpaceX has been contracted by the Department of Defense’s National Reconnaissance Office (NRO) to build a network of hundreds of low-orbiting spy satellites capable of operating as a swarm and tracking targets on the ground, according to Reuters. The Reuters report, which cites five sources with knowledge of the program, builds on earlier reporting by The Wall Street Journal that revealed SpaceX had signed a $1.8 billion contract in 2021 with an unnamed agency.
This network, called Starshield, would reportedly be able to gather continuous imagery all over Earth for US intelligence, using a mix of large imaging satellites to collect data and relay satellites to transmit information. According to one source who spoke to Reuters, it has the potential to make it so “no one can hide.” Neither SpaceX nor the NRO directly confirmed the company’s involvement in the project, but an NRO spokesperson told Reuters, "The National Reconnaissance Office is developing the most capable, diverse, and resilient space-based intelligence, surveillance, and reconnaissance system the world has ever seen.”
Last fall, it was reported that SpaceX had bagged a $70 million contract with the Space Force to provide satellite communications under its Starshield program. This is a distinct entity from SpaceX’s Starlink constellation, at least according to Elon Musk, who has said Starlink “needs to be a civilian network,” whereas Starshield is meant to be used for government and national security purposes.
This article originally appeared on Engadget at https://www.engadget.com/spacex-is-reportedly-building-hundreds-of-spy-satellites-for-the-us-government-150024771.html?src=rss
The National Security Agency’s director has confirmed that the agency buys Americans’ web browsing data from brokers without first obtaining warrants. Senator Ron Wyden (D-OR) blocked the appointment of the NSA’s inbound director Timothy Haugh until the agency answered his questions regarding its collection of Americans’ location and Internet data. Wyden said he’d been trying for three years to “publicly release the fact that the NSA is purchasing Americans’ internet records.”
In a letter dated December 11, current NSA Director Paul Nakasone confirmed to Wyden that the agency does make such purchases from brokers. "NSA acquires various types of [commercially available information] for foreign intelligence, cybersecurity, and other authorized mission purposes, to include enhancing its signals intelligence (SIGINT) and cybersecurity missions," Nakasone wrote. "This may include information associated with electronic devices being used outside and, in certain cases, inside the United States."
Nakasone went on to claim that the NSA "does not buy and use location data collected from phones known to be used in the United States either with or without a court order. Similarly, NSA does not buy and use location data collected from automobile telematics systems from vehicles known to be located in the United States."
An NSA spokesperson told Reutersthat the agency uses such data sparingly but that it has notable value for national security and cybersecurity purposes. "At all stages, NSA takes steps to minimize the collection of US [personal] information, to include application of technical filters," the spokesperson said.
Wyden has called the practice unlawful. "Such records can identify Americans who are seeking help from a suicide hotline or a hotline for survivors of sexual assault or domestic abuse," he said.
The senator urged Director of National Intelligence Avril Haines to order US intelligence agencies to stop buying Americans’ private data without consent. He also asked Haines to direct intelligence agencies to "conduct an inventory of the personal data purchased by the agency about Americans, including, but not limited to, location and internet metadata." Wyden said that any data that does not comply with Federal Trade Commission standards regarding personal data sales should be deleted.
Wyden pointed to an FTC settlement that this month banned a data broker from selling location data. The agency alleged that the information, which it claimed was sold to buyers including government contractors, "could be used to track people’s visits to sensitive locations such as medical and reproductive health clinics, places of religious worship and domestic abuse shelters."
The FTC stated in its complaint against the broker, formerly known as X-Mode Social, that by "failing to fully inform consumers how their data would be used and that their data would be provided to government contractors for national security purposes, X-Mode failed to provide information material to consumers and did not obtain informed consent from consumers to collect and use their location data."
The settlement was the first of its kind with a data broker. In a statement, Wyden, who has been investigating the data broker industry for several years, said he was "not aware of any company that provides such a warning to users [regarding their consent] before collecting their data."
The issue of US federal agencies buying phone location data isn't exactly new. In 2020, it emerged that Customs and Border Protection had been doing so. The following year, Wyden claimed the Defense Intelligence Agency and the Pentagon bought and used location data from Americans’ phones.
This article originally appeared on Engadget at https://www.engadget.com/nsa-admits-to-buying-americans-web-browsing-data-from-brokers-without-warrants-154904461.html?src=rss
Another lawmaker is pushing the Securities and Exchange Commission for more information about its security practices following the hack of its verified account on X. In a new letter to the agency’s Inspector general, Senator Ron Wyden, called for an investigation into “the SEC’s apparent failure to follow cybersecurity best practices.”
The letter, which was first reported byAxios, comes days after the SEC’s official X account was taken over in order to post a tweet claiming that spot bitcoin ETFs had been approved by the regulator. The rogue post temporarily juiced the price of bitcoin and forced SEC chair Gary Gensler to chime in from his X account that the approval had not, in fact, happened. (The SEC did approve 11 spot bitcoin ETFs a day later, with Gensler saying in a statement that “bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity.”)
The incident has raised a number of questions about the SEC’s security practices after officials at X said the financial regulator had not been using multi-factor authentication to secure its account. In the letter, Wyden, who chairs the Senate’s finance committee, said it would be "inexcusable" for the agency to not use additional layers of security to lock down its social media accounts.
“Given the obvious potential for market manipulation, if X’s statement is correct, the SEC’s social media accounts should have been secured using industry best practices,” Wyden wrote. “Not only should the agency have enabled MFA, but it should have secured its accounts with phishing-resistant hardware tokens, commonly known as security keys, which are the gold standard for account cybersecurity. The SEC’s failure to follow cybersecurity best practices is inexcusable, particularly given the agency’s new requirements for cybersecurity disclosure”
Wyden isn’t the only lawmaker who has pushed the SEC for more details about the hack. Senators J. D. Vance and Thom Tillis sent a letter of their own, addressed to Gensler, immediately following the incident. They asked for a briefing about the agency’s security policies and investigation into the hack by January 23.
The SEC didn’t immediately respond to a request for comment. The agency said in an earlier statement that it was working with the FBI and the Inspector General to investigate the matter.
This article originally appeared on Engadget at https://www.engadget.com/senators-want-to-know-why-the-secs-x-account-wasnt-secured-with-mfa-203614701.html?src=rss
US Senator Ron Wyden wants the public to know about the details surrounding the long-running Hemisphere phone surveillance program. Wyden has written US Attorney General Merrick Garland a letter (PDF), asking him to release additional information about the project that apparently gives law enforcement agencies access to trillions of domestic phone records. In addition, he said that federal, state, local and Tribal law enforcement agencies have the ability to request "often-warrantless searches" from the project's phone records that AT&T has been collecting since 1987.
The Hemisphere project first came to light in 2013 when The New York Times reported that the White House Office of National Drug Control Policy (ONDCP) was paying AT&T to mine and keep records of its customers' phone calls. Four billion new records are getting added to its database every day, and a federal or state law enforcement agency can request a query with a subpoena that they can issue themselves. Any law enforcement officer can send in a request to a single AT&T analyst based in Atlanta, Georgia, Wyden's letter says, even if they're seeking information that's not related to any drug case. And apparently, they can use Hemisphere not just to identify a specific number, but to identify the target's alternate numbers, to obtain location data and to look up the phone records of everyone who's been in communication with the target.
The project has been defunded and refunded by the government several times over the past decade and was even, at one point, receiving federal funding under the name "Data Analytical Services (DAS)." Usually, projects funded by federal agencies would be subject to a mandatory Privacy Impact Assessment conducted by the Department of Justice, which means their records would be made public.
However, Hemisphere's funding passes through a middleman, so it's not required to go through mandatory assessment. To be specific, ONDCP funds the program through the Houston High Intensity Drug Trafficking Area, which is a regional funding organization that distributes federal anti-drug law grants and is governed by a board made up of federal, state and local law enforcement officials. The DOJ had provided Wyden's office with "dozens of pages of material" related to the project in 2019, but they had been labeled "Law Enforcement Sensitive" and cannot be released to the public.
"I have serious concerns about the legality of this surveillance program, and the materials provided by the DOJ contain troubling information that would justifiably outrage many Americans and other members of Congress," Wyden wrote in his letter. "While I have long defended the government’s need to protect classified sources and methods, this surveillance program is not classified and its existence has already been acknowledged by the DOJ in federal court. The public interest in an informed debate about government surveillance far outweighs the need to keep this information secret."
This article originally appeared on Engadget at https://www.engadget.com/us-senator-calls-for-the-public-release-of-att-hemisphere-surveillance-records-083627787.html?src=rss
The Biden Administration unveiled its ambitious next steps in addressing and regulating artificial intelligence development on Monday. Its expansive new executive order (EO) seeks to establish further protections for the public as well as improve best practices for federal agencies and their contractors.
"The President several months ago directed his team to pull every lever," a senior administration official told reporters on a recent press call. "That's what this order does, bringing the power of the federal government to bear in a wide range of areas to manage AI's risk and harness its benefits ... It stands up for consumers and workers, promotes innovation and competition, advances American leadership around the world and like all executive orders, this one has the force of law."
These actions will be introduced over the next year with smaller safety and security changes happening in around 90 days and with more involved reporting and data transparency schemes requiring nine to 12 months to fully deploy. The administration is also creating an “AI council,” chaired by White House Deputy Chief of Staff Bruce Reed, who will meet with federal agency heads to ensure that the actions are being executed on schedule.
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Public safety
"In response to the President's leadership on the subject, 15 major American technology companies have begun their voluntary commitments to ensure that AI technology is safe, secure and trustworthy before releasing it to the public," the senior administration official said. "That is not enough."
The EO directs the establishment of new standards for AI safety and security, including reporting requirements for developers whose foundation models might impact national or economic security. Those requirements will also apply in developing AI tools to autonomously implement security fixes on critical software infrastructure.
By leveraging the Defense Production Act, this EO will "require that companies developing any foundation model that poses a serious risk to national security, national economic security, or national public health and safety must notify the federal government when training the model, and must share the results of all red-team safety tests," per a White House press release. That information must be shared prior to the model being made available to to the public, which could help reduce the rate at which companies unleash half-baked and potentially deadly machine learning products.
In addition to the sharing of red team test results, the EO also requires disclosure of the system’s training runs (essentially, its iterative development history). “What that does is that creates a space prior to the release… to verify that the system is safe and secure,” officials said.
Administration officials were quick to point out that this reporting requirement will not impact any AI models currently available on the market, nor will it impact independent or small- to medium-size AI companies moving forward, as the threshold for enforcement is quite high. It's geared specifically for the next generation of AI systems that the likes of Google, Meta and OpenAI are already working on with enforcement on models starting at 10^26 petaflops, a capacity currently beyond the limits of existing AI models. "This is not going to catch AI systems trained by graduate students, or even professors,” the administration official said.
What's more, the EO will encourage the Departments of Energy and Homeland Security to address AI threats "to critical infrastructure, as well as chemical, biological, radiological, nuclear, and cybersecurity risks," per the release. "Agencies that fund life-science projects will establish these standards as a condition of federal funding, creating powerful incentives to ensure appropriate screening and manage risks potentially made worse by AI." In short, any developers found in violation of the EO can likely expect a prompt and unpleasant visit from the DoE, FDA, EPA or other applicable regulatory agency, regardless of their AI model’s age or processing speed.
In an effort to proactively address the decrepit state of America's digital infrastructure, the order also seeks to establish a cybersecurity program, based loosely on the administration's existing AI Cyber Challenge, to develop AI tools that can autonomously root out and shore up security vulnerabilities in critical software infrastructure. It remains to be seen whether those systems will be able to address the concerns of misbehaving models that SEC head Gary Gensler recently raised.
AI watermarking and cryptographic validation
We're already seeing the normalization of deepfake trickery and AI-empowered disinformation on the campaign trail. So, the White House is taking steps to ensure that the public can trust the text, audio and video content that it publishes on its official channels. The public must be able to easily validate whether the content they see is AI-generated or not, argued White House officials on the press call.
Adobe
The Department of Commerce is in charge of the latter effort and is expected to work closely with existing industry advocacy groups like the C2PA and its sister organization, the CAI, to develop and implement a watermarking system for federal agencies. “We aim to support and facilitate and help standardize that work [by the C2PA],” administration officials said. “We see ourselves as plugging into that ecosystem.”
Officials further explained that the government is supporting the underlying technical standards and practices that will lead to digital watermarking’ wider adoption — similar to the work it did around developing the HTTPS ecosystem and in getting both developers and the public on-board with it. This will help federal officials achieve their other goal of ensuring that the government's official messaging can be relied upon.
Civil rights and consumer protections
The first Blueprint for an AI Bill of Rights that the White House released last October directed agencies to “combat algorithmic discrimination while enforcing existing authorities to protect people's rights and safety,” the administration official said. “But there's more to do.”
The new EO will require guidance be extended to “landlords, federal benefits programs and federal contractors” to prevent AI systems from exacerbating discrimination within their spheres of influence. It will also direct the Department of Justice to develop best practices for investigating and prosecuting civil rights violations related to AI, as well as, according to the announcement, “the use of AI in sentencing, parole and probation, pretrial release and detention, risk assessments, surveillance, crime forecasting and predictive policing, and forensic analysis."
Additionally, the EO calls for prioritizing federal support to accelerate development of privacy-preserving techniques that would enable future large language models to be trained on large datasets without the current risk of leaking personal details that those datasets might contain. These solutions could include “cryptographic tools that preserve individuals’ privacy,” developed with assistance from the Research Coordination Network and National Science Foundation. The executive order also reiterates its calls for bipartisan legislation from Congress addressing the broader privacy issues that AI systems present for consumers.
In terms of healthcare, the EO states that the Department of Health and Human Services will establish a safety program that tracks and remedies unsafe, AI-based medical practices. Educators will also see support from the federal government in using AI-based educational tools like personalized chatbot tutoring.
Worker protections
The Biden administration concedes that while the AI revolution is a decided boon for business, its capabilities make it a threat to worker security through job displacement and intrusive workplace surveillance. The EO seeks to address these issues with “the development of principles and employer best practices that mitigate the harms and maximize the benefit of AI for workers,” an administration official said. “We encourage federal agencies to adopt these guidelines in the administration of their programs.”
Richard Shotwell/Invision/AP
The EO will also direct the Department of Labor and the Council of Economic Advisors to both study how AI might impact the labor market and how the federal government might better support workers “facing labor disruption” moving forward. Administration officials also pointed to the potential benefits that AI might bring to the federal bureaucracy including cutting costs, and increasing cybersecurity efficacy. “There's a lot of opportunity here, but we have to to ensure the responsible government development and deployment of AI,” an administration official said.
To that end, the administration is launching on Monday a new federal jobs portal, AI.gov, which will offer information and guidance on available fellowship programs for folks looking for work with the federal government. “We're trying to get more AI talent across the board,” an administration official said. “Programs like the US Digital Service, the Presidential Innovation Fellowship and USA jobs — doing as much as we can to get talent in the door.” The White House is also looking to expand existing immigration rules to streamline visa criteria, interviews and reviews for folks trying to move to and work in the US in these advanced industries.
The White House reportedly did not brief the industry on this particular swath of radical policy changes, though administration officials did note that they had already been collaborating extensively with AI companies on many of these issues. The Senate held its second AI Insight Forum event last week on Capitol Hill, while Vice President Kamala Harris is scheduled to speak at the UK Summit on AI Safety, hosted by Prime Minister Rishi Sunak on Tuesday.
Chip Somodevilla via Getty Images
At an event hosted by The Washington Post on Thursday, Senate Majority Leader Chuck Schumer (D-NY) was already arguing that the executive order did not go far enough and could not be considered an effective replacement for congressional action, which to date, has been slow in coming.
“There’s probably a limit to what you can do by executive order,” Schumer told WaPo, “They [the Biden Administration] are concerned, and they’re doing a lot regulatorily, but everyone admits the only real answer is legislative.”
This article originally appeared on Engadget at https://www.engadget.com/sweeping-white-house-ai-executive-order-takes-aim-at-the-technologys-toughest-challenges-090008655.html?src=rss
It looks like the Internal Revenue Service (IRS) truly was working on a free TurboTax alternative like earlier reports had claimed. The US tax authority has announced that it will start pilot testing its new Direct File program for the 2024 filing season, though it will initially be available for select taxpayers in 13 states only. During its pilot period, Direct File will only cover individual federal tax returns and won't have the capability to prepare people's state returns. That's why 9 out of the 13 states testing it — namely Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — don't levy state income taxes.
Arizona, California, Massachusetts and New York, the other four states in the list, worked with the IRS to integrate their state taxes into the Direct File system for 2024. The IRS says it invited all states to join the pilot program, but not all of them were in a position to participate "at this time." In addition to being only available in certain locations, Direct File will only be accessible by people with "relatively simple returns" at the beginning. It will cover W-2 wages and tax credits like the Earned Income Tax Credit and the Child Tax Credit, for instance, but it will not cover self-employment income and itemized deductions. However, the agency is still finalizing the tax scope for the pilot, so it could still change over the coming months.
Based on the screenshots the IRS shared with The Washington Post, taxpayers will only have to answer a questionnaire to be able to file their taxes directly, simplifying the process without having to pay for a third-party service. An IRS official told the publication that select eligible taxpayers in the aforementioned states will start getting invitations to use the service sometime around mid-February next year. The agency says it will begin with a small group of taxpayers before expanding access to more and more people as the filing season for the 2023 federal tax return progresses.
"This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS," IRS Commissioner Danny Werfel said in a statement. "In this limited pilot for 2024, we'll be working closely with the states that have agreed to participate in an important test run of the state integration. This will help us gather important information about the future direction of the Direct File program."
The IRS is hoping to gather data and feedback during the pilot to be able to analyze how effective Direct File is. It's also hoping to identify areas of improvement for a "potential large-scale launch in the future."
This article originally appeared on Engadget at https://www.engadget.com/irs-will-start-piloting-its-free-turbotax-alternative-in-2024-065553528.html?src=rss