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Open Source Victory: The IRS Tax Software TurboTax Feared

8230
05
Jun

The IRS’s Direct File software, a program once targeted by TurboTax lobbyists, has been released as open source. This move comes as key developers behind the project transition to the private sector to further innovate in tax filing solutions.

Direct File, developed by the US Digital Service and 18F, gained popularity for its user-friendly interface and efficiency. During its pilot program, approximately 300,000 users experienced its “free, easy, and trustworthy” approach, receiving overwhelmingly positive feedback.

However, the program faced opposition from financial technology giants like Intuit (TurboTax), who viewed the free service as a threat. Efforts to undermine Direct File included lobbying and attempts to incorporate its defunding into budget bills, actions criticized as detrimental to taxpayers.

The decision by the IRS to open source Direct File is a significant win for accessible tax solutions. Simultaneously, Chris Given, Jen Thomas, and Merici Vinton, who contributed to Direct File, are joining the Economic Security Project’s Future of Tax Filing Fellowship. Together with Gabriel Zucker from Code for America, they will focus on making tax filing simpler and more affordable.

This combination of open-source availability and continued development promises a brighter future for tax filing, empowering individuals with accessible and efficient tools.

Ngoc Vy

Ngoc Vy is a tech journalist specializing in artificial intelligence, emerging technologies, and their societal impact. She combines technical rigor with on-the-ground coverage of Vietnam’s startup ecosystem, from AI ethics debates to gov-tech adoption. Ngoc Vy is also passionate about bridging the gender gap in STEM journalism.