IRS Direct File tax service discontinued amid government cuts

The IRS has officially confirmed that the Direct File tax service is gone, leaving many Americans uncertain about the future of free online tax filing. The free government-run program, which allowed taxpayers to file returns directly with the IRS, has faced months of speculation over its fate. IRS Commissioner Billy Long recently stated that the service is “gone,” confirming earlier reports of its removal. This decision has sparked debate over whether ending Direct File benefits private tax prep companies while making tax season harder for everyday Americans.

Why the IRS Direct File program was eliminated

The IRS Direct File program was first introduced in 2023 to simplify the tax filing process. It allowed taxpayers in select states to submit returns directly to the government at no cost, bypassing paid services like TurboTax or H&R Block. However, the program came under scrutiny as the Department of Government Efficiency (DOGE) considered federal spending cuts. According to IRS Commissioner Long, the Trump administration’s new initiative includes a task force for a “replacement of Direct File,” signaling that the service will not return in its current form.

Public backlash over ending Direct File tax service

Lawmakers and consumer advocates are criticizing the decision to end the Direct File tax service. Senator Elizabeth Warren voiced her concerns on X, saying the program made filing taxes “easy and free” for millions of Americans. Critics argue that discontinuing the service hands an advantage to private tax software companies, which often charge users or upsell additional features. This move has reignited conversations about the high costs of tax preparation in the U.S. and the need for accessible, no-cost solutions for taxpayers.

What taxpayers should do after the Direct File shutdown

With the IRS Direct File service discontinued, taxpayers must now rely on either commercial tax prep software or professional tax services to file their returns. While the IRS has yet to announce a formal replacement, experts suggest taxpayers explore IRS Free File options if they meet eligibility requirements. Staying updated on any new initiatives or replacement programs will be key as the government considers future steps to simplify tax filing without increasing costs for taxpayers.