Key Metrics
14.27
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-11-10
Key Impacts
Positive Impacts (5)
Event Overview
The decision to discontinue the free IRS Direct File program highlights a shift in government policy towards alternative tax filing methods. Despite an increase in usage, the program is deemed less effective than other options, reflecting broader administrative and taxpayer preferences.
Collect Records
IRS Direct File Program Discontinued for 2026 Filing Season
The Trump administration has decided to discontinue the free IRS Direct File electronic tax filing system for the 2026 filing season. The future of the program remains uncertain. Treasury Secretary and IRS Commissioner Scott Bessent stated that there are better alternatives, noting that the program was not widely used. According to an IRS report obtained by the Center for Taxpayer Rights, 296,531 taxpayers used Direct File for their 2025 tax returns, up from 140,803 in 2024. The Direct File program, a pilot launched in 2024, was initiated following the IRS's mandate to develop a direct filing system, funded by the Inflation Reduction Act signed into law by President Biden in 2022. The Direct File website now indicates that the program is closed, with more information to follow. A president from the liberal-leaning Economic Security Project criticized the decision, stating it benefits Trump's wealthy associates while burdening honest, hardworking Americans with higher tax-filing costs.