The Trump administration plans to eliminate the IRS’ Direct File program, an electronic system for filing tax returns directly to the agency for free. The program, developed during Joe Biden’s presidency, was popular for making tax filing easy and economical. However, it faced backlash from Republican lawmakers and commercial tax preparation companies who argued that free filing programs already exist. The program had been in limbo since the start of the Trump administration, and Elon Musk’s Department of Government Efficiency has now decided to end it.
Despite hopes that Musk’s team could take over and improve Direct File, IRS staff were instructed to stop working on its development for the 2026 tax filing season. Critics of the program, such as the Taxpayers Protection Alliance, cited its costs and issues like taxpayer confusion. Meanwhile, supporters like the Economic Security Project argue that ending Direct File is a disservice to taxpayers.
Direct File was rolled out as a pilot program in 2024 and was made permanent by the IRS last May. It allowed taxpayers to file returns directly to the agency without using private tax preparation companies. However, these companies have lobbied against Direct File, arguing that it wastes IRS resources and taxpayer dollars. The program was used by 140,803 taxpayers last season in 12 states, and it expanded to include half the country this year.
Critics of ending Direct File, such as Code for America and Sen. Elizabeth Warren, argue that it is a betrayal of public trust and allows tax prep companies to profit off services that should be free. The decision to eliminate Direct File has sparked debate and controversy among lawmakers and advocacy groups.
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