The IRS's Direct File program, introduced in 2024, allowed taxpayers in 12 states to file simple tax returns online for free. Over 140,000 individuals utilized the service, collectively saving an estimated $5.6 million in tax preparation fees . The program aimed to simplify the tax filing process and reduce costs for Americans.
However, the Trump administration has announced plans to terminate the Direct File program. Critics, including Senator Elizabeth Warren, argue that this move benefits large tax preparation companies like Intuit and H&R Block, which have historically profited from paid tax filing services . They contend that eliminating the free service forces taxpayers back into costly alternatives.
Supporters of the decision claim that the Direct File program is redundant, given existing free filing options through private partnerships. They also express concerns about the IRS's role in both collecting taxes and providing filing services, suggesting a potential conflict of interest.
The debate continues as the administration moves forward with discontinuing the program, leaving many taxpayers uncertain about future free filing options.