Overview

• The Trump administration has formally terminated the IRS's Direct File program, a free online tax filing service introduced during Biden's presidency.
• Direct File, funded by the Inflation Reduction Act, allowed taxpayers to file directly with the IRS and was praised for its simplicity and cost savings.
• Critics, including Republican lawmakers and tax preparation companies, argued the program was unnecessary and a misuse of taxpayer funds.
• Supporters, including Sen. Elizabeth Warren, condemned the decision, citing it as a move to protect private tax prep companies at the expense of taxpayers.
• The program had grown from a 2024 pilot in 12 states to serving 25 states in 2025, but IRS staff were instructed in March to cease development for 2026.