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Trump Administration Moves to End IRS Direct File Tax Program

The decision halts development of the free tax-filing system created under Biden, drawing criticism from consumer advocates and Democratic lawmakers.

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Stock image/file photo: IRS tax return forms and U.S. Dollars.
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Overview

  • The IRS Direct File program, launched as a pilot in 2024 and expanded in 2025, allowed taxpayers to file simple returns directly for free.
  • IRS staff were instructed in mid-March to stop work on the program for the 2026 tax season, signaling its termination under the Trump administration.
  • Republican lawmakers and private tax preparation companies opposed the program, arguing it was costly and unnecessary given existing free options.
  • Supporters, including Senator Elizabeth Warren, criticized the decision as a giveaway to corporate tax-prep firms at the expense of taxpayers.
  • Direct File was funded by the 2022 Inflation Reduction Act and had received positive feedback from users for its simplicity and cost savings.