The Internal Revenue Service (IRS) will not offer its Direct File program in the upcoming year, a decision confirmed by the Trump administration. In an email sent to state comptrollers on Monday, IRS official Cynthia Noe stated that “IRS Direct File will not be available in Filing Season 2026. No launch date has been set for the future.” This program, which aimed to provide taxpayers with a free and efficient way to file tax returns, has faced significant scrutiny.
The Direct File initiative was introduced during Joe Biden‘s presidency and received praise for its user-friendly approach to tax filing. However, it encountered considerable opposition from Republican lawmakers and commercial tax preparation firms. Critics labeled it as a misuse of taxpayer funds, arguing that existing free filing options, albeit cumbersome, already serve that purpose. The commercial sector, which profits significantly from tax preparation services, also voiced strong disapproval of the program.
During a press briefing at the White House, Scott Bessent, the current IRS commissioner, emphasized that there are “better alternatives” to Direct File. He noted that the program had low usage rates, stating, “It wasn’t used very much. And we think that the private sector can do a better job.”
An evaluation conducted by the Center for Taxpayer Rights, following a Freedom of Information Act request, revealed that 296,531 taxpayers submitted accepted returns through Direct File for the 2025 tax season, a notable increase from 140,803 in 2024. Despite this growth, the program’s future remains uncertain, especially following the Trump administration’s shift in priorities.
The Direct File initiative was launched as a pilot program in 2024, funded by the Inflation Reduction Act signed into law by Biden in 2022. The administration allocated tens of millions of dollars to develop this system, intending to simplify tax filing for millions of Americans. Last year, the IRS announced plans to make the program permanent, but strong lobbying efforts from private tax preparation companies contributed to the program’s eventual demise.
As of Wednesday, the Direct File website indicates that “Direct File is closed. More information will be available at a later date.” The decision to terminate the program has drawn criticism from various quarters, including from Adam Ruben, a vice president at the Economic Security Project. He expressed disappointment, stating, “It’s not surprising that the program was eliminated. Trump’s billionaire friends get favors while honest, hardworking Americans will pay more to file their taxes.”
This development raises concerns for taxpayers who may now face higher costs and complexity in filing their returns. The average American typically spends around $140 annually on tax preparation. With the withdrawal of the Direct File option, many will have to navigate the existing, often confusing, alternatives available in the market.
The IRS’s decision reflects broader trends in tax policy and the ongoing debate over the role of government versus the private sector in providing essential services. As the situation evolves, taxpayers are left to adapt to a new landscape in tax filing, with the hope that future solutions will better serve their needs.
