Overview

• The Trump administration plans to terminate the IRS Direct File program, a free electronic tax filing system, according to reports citing anonymous sources.
• IRS staff were instructed in mid-March to stop work on the program for the 2026 tax season, effectively pausing its development.
• Direct File, launched in 2024 under the Inflation Reduction Act, expanded to 25 states in 2025 and was praised for its ease of use and cost savings.
• Critics of the decision, including Sen. Elizabeth Warren, argue it prioritizes corporate tax preparation interests over taxpayer benefits.
• The IRS has not confirmed a shutdown date, and the program remains operational for the 2025 tax season, though its future is uncertain.