The Internal Revenue Service (IRS) has decided to discontinue its free Direct File program for the 2026 tax filing season. The program, which allowed taxpayers to file their taxes directly with the IRS online at no cost, will not be available next year, according to an email sent by the IRS to participating states on Monday (November 3). The decision comes amid criticism from Republican lawmakers and commercial tax preparation companies.
Direct File was initially launched as a pilot program in 2024 during President Joe Biden‘s administration, with funding from the Inflation Reduction Act. The program aimed to make tax filing easier and more affordable for taxpayers. Despite receiving positive feedback from users, including a 90% satisfaction rate in surveys, the program faced opposition from some lawmakers and private tax software companies.
According to Forbes, former IRS Commissioner Billy Long indicated that the program’s days were numbered, stating, “That’s gone. Big beautiful Billy wiped that out.” The Trump administration and some Republican lawmakers have targeted the program, arguing that it competes with private tax preparation services.
The IRS announced that taxpayers who previously used Direct File will need to access their tax records through their IRS online accounts or by submitting a request for a copy of their tax return. The agency has also been tasked with exploring alternatives to Direct File, including public-private partnerships that could provide free tax filing options for up to 70% of taxpayers based on adjusted gross income.
Despite the end of Direct File, the IRS’s Free File program, a partnership with private tax software providers, will continue to offer free e-filing services to eligible taxpayers. However, the use of Free File has been limited, with only a small percentage of eligible taxpayers taking advantage of the service.
The IRS’s decision to terminate Direct File leaves taxpayers with fewer free options for filing their taxes, potentially increasing reliance on paid tax preparation services. The agency has not set a launch date for any future versions of Direct File, leaving its long-term future uncertain.
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