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Trump Administration Moves to End IRS Direct File Program for Free Tax Filing

The decision, supported by Elon Musk's Department of Government Efficiency, halts development of the Biden-era initiative, drawing criticism from consumer advocates and progressive lawmakers.

Image
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 announced plans to permanently terminate the IRS Direct File program, a free tax filing system launched under President Biden.
  • IRS staff were instructed in March to stop work on the program's expansion for the 2026 tax season, effectively shutting it down.
  • The program faced strong opposition from private tax preparation companies and Republican lawmakers, who argued it competed with commercial services and wasted taxpayer funds.
  • Elon Musk's Department of Government Efficiency played a key role in dismantling support structures for Direct File, including the shutdown of the 18F agency that helped develop it.
  • Critics, including Senator Elizabeth Warren, argue the rollback prioritizes corporate interests over taxpayer benefits, undermining efforts to provide a free, accessible tax filing option.