IRS Faces Scrutiny Over Permanent Direct File Tax System

The IRS declares Direct File a permanent, free option in all states, despite controversy over its authority and implementation.

IRS Commissioner Danny Werfel announced the permanent rollout of Direct File for the 2025 tax season.
The program will eventually support all tax situations, starting with simple returns.
Critics argue the IRS lacks congressional authorization for Direct File and question its feasibility study.
The pilot program, limited to 12 states, saw high user satisfaction and significant cost savings.
Opponents, including 13 state attorneys general, claim the program could harm low-income taxpayers and small businesses.