The Trump administration intends to discontinue the free tax return service established during the Biden administration, according to the Associated Press, citing two sources familiar with the decision.
The IRS’ “Direct File Program” enables Americans to submit their tax returns directly to IRS agents online for no cost. This electronic system was initiated as a pilot project in 2024 and was made permanent in May of the previous year.
However, in mid-March, IRS personnel assigned to the program were instructed to cease operations in preparation for the 2026 tax return season, two sources informed the Associated Press.
Oka contacted the White House for feedback.
The 2022 Inflation Reduction Act tasked the IRS with creating “direct file” systems, and the Biden administration invested millions in its development.
Yet, the initiative has drawn criticism from Republicans who claim it’s a misuse of taxpayer funds, and companies assert it depends on taxpayers’ readiness to allocate money for tax services.
Some opponents have noted that there are free options available to assist with tax returns, but the average American spends $140 annually to file their tax return, according to the Associated Press.
The outlook for the program has been uncertain in recent months as the Trump administration has sought to reduce government expenditures.
Elon Musk, a senior adviser to the president, stated earlier this year that he “eliminated” the 18F, a digital services division of the General Services Administration (GSA), which engaged in projects like Direct File.
The Associated Press contributed.
