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The Trump administration is reportedly ending the IRS’s Direct File program, a free tax filing service. This decision comes despite the program’s initial success and potential to simplify tax filing for millions.
Launched as a pilot in 2024, Direct File was available in 12 states and expanded to 25 in 2025. However, IRS staff were allegedly instructed in March to halt development for the 2026 tax season. Massive IRS staff cuts further complicate the program’s future.
The program faced opposition from Intuit, maker of TurboTax, which argued Direct File was an unnecessary use of taxpayer money. They have lobbied against the program.
Senator Elizabeth Warren criticized this move, stating it protects tax preparation companies from losing revenue. She emphasized that Americans deserve a free and easy way to file taxes.
While TurboTax offers free filing for simple returns, it has faced lawsuits regarding misleading advertising. In 2022, Intuit paid $141 million in restitution over these claims.
Direct File, though limited to simple returns, showed promise. In 2024, it processed returns for over 140,000 taxpayers. The IRS had aimed to expand the program to cover more complex tax situations.
House Republicans had previously urged President Trump to eliminate Direct File, calling it unauthorized and wasteful.
The Treasury Department estimated over 30 million taxpayers were eligible for Direct File this year. The termination of this service raises questions about the future of accessible tax filing options.
Key Takeaways:
- Direct File Shutdown: Trump administration ends the IRS’s free tax filing service.
- Intuit’s Role: TurboTax maker lobbied against Direct File, citing unnecessary costs.
- Accessibility Concerns: Critics argue this move limits access to free and easy tax filing.
Related Terms: IRS, Direct File, TurboTax, Tax Filing, Free Tax Services, Intuit, Elizabeth Warren, Trump Administration