IRS Ends Direct File Program
The Internal Revenue Service, led by Commissioner Bill Long, has decided to discontinue its direct file program following a limited pilot and a full filing season. This move is part of legislation passed under President Donald Trump’s substantial spending and policy bill, which aims to fund various investigations and will replace the direct e-file program previously utilized by the IRS.
Long noted, “You’ve heard of the files directly; it’s gone. The big beautiful Billy wiped it out. I don’t care about files directly. I care about audits directly.” However, the agency hasn’t specified what the future holds for this program.
Long reassured the public, stating that the IRS is focused on modernizing and improving taxpayer experiences, ensuring transparency regarding tax returns and audit statuses. There’s anticipation for a forthcoming Treasury report to Congress about direct file programs and possible public-private partnerships.
This direct file initiative allowed taxpayers in select states with straightforward tax situations to file their returns directly with the IRS, at no cost. The IRS initially piloted this program in 12 states in 2024 and later expanded it to 13 additional states in 2025. According to the Treasury Department, about 30 million Americans were eligible to use this option in 2025.
Some Republicans have criticized the program, emphasizing that the federal government might be overstepping. Notably, the Trump administration had also intended to terminate this direct file approach before the policy overhaul. Reports noted that approximately 300,000 individuals utilized the direct file option during the 2025 tax season, with 94% of survey respondents rating their experience positively.
If you are a taxpayer who received an extension, you may find yourself unable to file your 2024 taxes just yet. The IRS has confirmed that returns should be submitted by the October 15 deadline.
Free Filing Options Still Available
Though the direct file service is being discontinued, taxpayers will still have access to free filing options for the upcoming tax season. The IRS maintains a program that collaborates with third-party tax preparation companies to assist taxpayers, though this comes with varying eligibility criteria, including adjusted gross income and residency.
Moreover, the IRS offers a Volunteer Income Tax Assistance program aimed at supporting individuals earning under $67,000 annually in 2025. This initiative also caters to those with disabilities or limited English proficiency, providing free in-person tax preparation help.
If you prefer a hands-on approach, you can file your taxes using the IRS’s free fillable forms, which allow you to submit them directly.
