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IRS Suspends Direct File for 2026 After Notifying Participating States

A 2025 law pushed the IRS to review public‑private alternatives, with the site closed and no relaunch date set.

Overview

  • The IRS emailed 25 state partners that “IRS Direct File will not be available in Filing Season 2026,” adding that no future launch date is planned.
  • Roughly 296,531 returns were accepted through Direct File in 2025, up from 140,803 in 2024, with surveys reporting very high user satisfaction.
  • The Direct File website now states the service is closed, and taxpayers seeking records are directed to use existing IRS online accounts for transcripts.
  • July legislation directed the agency to study replacing direct e‑file programs with public‑private partnerships, and Treasury chief Scott Bessent said the private sector can provide better options.
  • Reactions split along party lines, with Democrats including Sens. Ron Wyden and Elizabeth Warren condemning the move as aiding tax prep firms, while House Ways and Means Chair Jason Smith praised the suspension.