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Trump Administration Ends IRS Free Tax Filing Program

The decision halts the Biden-era Direct File initiative, which aimed to simplify tax filing and save taxpayers millions, following pressure from private tax firms and GOP opposition.

Image
Stock image/file photo: IRS tax return forms and U.S. Dollars.
FILE - This July 24, 2018, file photo shows a portion of the 1040 U.S. Individual Income Tax Return form. The Trump administration is working on plans to delay the April 15 federal tax deadline for most individual taxpayers as well as small businesses. Treasury Secretary Steven Mnuchin told Congress on Wednesday, March 11, 2020, that the administration is "looking at providing relief to certain taxpayers and small businesses who will be able to get extensions on their taxes."
A calculator, pencil, glasses, and tax form sitting on top of an April 2025 calendar with the phrase "Taxes due" written on April 15.

Overview

  • The Trump administration has officially decided to terminate the IRS Direct File program, a free online tax filing system launched under President Biden.
  • Direct File, funded through the 2022 Inflation Reduction Act, allowed taxpayers to file directly with the IRS and saved users an estimated $5.6 million in its 2024 pilot phase.
  • The program faced sustained opposition from Republican lawmakers and private tax preparation companies, which argued it was redundant and costly despite high user satisfaction.
  • Development of the program was quietly halted in March 2025, after Elon Musk's Department of Government Efficiency disbanded 18F, the agency that helped create Direct File.
  • Critics, including Senator Elizabeth Warren, accuse the administration of prioritizing corporate interests over taxpayer benefits, while proponents lament the loss of a streamlined, cost-saving service.