The Internal Revenue Service (IRS) has recently announced its decision to end the Direct File program. This program used to ensure that millions of taxpayers filed their returns for free. This decision comes on the heels of the Trump administration’s efforts to abolish Direct File altogether. It does so just as we approach the launch of another major policy megabill. The IRS recently made clear taxpayer relief is on the way. If you’ve filed for an extension, you can still take advantage of Direct File for your 2024 taxes—through October 15.
While Direct File was first piloted in 12 states in 2024, it’s been expedited to reach an additional 13 states in 2025. That amounts to around 30 million Americans who would theoretically be eligible to use this service come the 2025 tax season. Even with its brief existence, almost 300,000 filers chose Direct File, indicating significant demand for this type of program. User feedback found 94% of users felt their experience was “excellent” or “above average.”
As originally conceived, Direct File was meant to be a direct e-file program operated by the IRS. Taxpayers could access it through the website https://directfile.irs.gov/ and submit their tax returns without incurring any fees. A contingent of Republican lawmakers attacked the program as unnecessary “wasteful” spending and a federal overreach.
The project was just one small piece of a broader effort during the Trump administration. It included significant funding for research into a replacement for Direct File. In response, IRS Commissioner Bill Long took a cavalier approach to the program’s fate.
“You’ve heard of Direct File, that’s gone,” Long stated.
He sharpened his rhetoric around prioritization by the IRS.
“Big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit,” Long added.
In light of the program’s termination, an IRS spokesperson emphasized the agency’s commitment to modernizing its services and enhancing taxpayer experiences.
“Commissioner Billy Long is committed to modernizing the IRS and providing a taxpayer experience that meets today’s expectations, which includes giving taxpayers transparency into the status of their tax returns and audits,” the spokesperson noted.
The IRS looks forward to working collaboratively with the Treasury on developing and assessing viable, alternative solutions to Direct File. This request is consistent with recent policy developments.
“We look forward to Treasury’s forthcoming report to Congress on the Direct File program and on potential public-private partnership alternatives to Direct File, as required by the One Big Beautiful Bill,” the spokesperson stated.