Free IRS Direct File Program Eliminated by Trump Administration

The Trump administration has reportedly moved to discontinue the Internal Revenue Service’s (IRS) innovative Direct File program, a free government-run service designed for direct tax filing. IRS Commissioner Billy Long confirmed the program’s cessation earlier this week during a summit, stating, “big beautiful Billy wiped that out,” according to a Bloomberg Law report. This announcement brings an end to months of swirling uncertainty surrounding the future of the popular tax service.

The decision to terminate the Direct File initiative is attributed to a provision within President Donald Trump’s comprehensive legislation, dubbed the “Big Beautiful Bill.” This bill notably includes a mandate for the establishment of a task force dedicated to exploring “the replacement of Direct File.” The IRS initially launched Direct File in 2023, offering taxpayers a streamlined, no-cost method to submit their federal tax returns directly to the government. The program underwent a successful testing phase in select states during the previous tax season, with plans for a broader rollout in the current year.

Speculation regarding Direct File’s fate has been rife for several months, with numerous reports indicating its potential elimination amidst federal budget cuts proposed by the Department of Government Efficiency’s (DOGE). Commissioner Long’s statement, “I don’t care about Direct File. I care about direct audit,” as quoted by Bloomberg Law, further underscores the administration’s new direction.

The program’s abrupt termination has drawn sharp criticism from many lawmakers. Senator Elizabeth Warren (D-MA) voiced her strong disapproval on X, asserting, “Direct File was an easy way for Americans to file their taxes for FREE each year. Why in the world did the Trump administration kill it? To give a huge handout to giant tax prep companies like TurboTax that rip Americans off.” Her remarks highlight concerns that the move disproportionately benefits private tax preparation corporations at the expense of average taxpayers.

In response to inquiries, an IRS spokesperson provided a statement to CNBC, indicating, “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.” Further comments from the IRS were not immediately available.