IRS Asks Oregonians for Input on Free Tax Filing Program

Recently, the IRS reached out to Oregonians and taxpayers nationwide, prompting them to think about a significant decision unfolding in Washington, D.C. This relates to the future of a Biden-era initiative that offers taxpayers a chance to file their taxes for free, although there’s a potential risk of exclusion for some.

As the IRS prepares for the next steps, it’s crucial to note that a pilot program for free tax filing was introduced in January 2025. This initiative, known as the IRS Direct File, rolled out in Oregon and various other states when taxpayers began filing their returns. Looking ahead, the IRS is expected to enhance accessibility for the 2024 tax year.

In light of new proposals, the IRS is seeking to gather public opinion before presenting a report to Congress by October 2nd. This effort follows President Donald Trump’s advocacy for changes, which he described as a “one big and beautiful bill.”

To gather feedback, the IRS has opened a survey until September 5th. They’re asking participants to respond to straightforward questions that seem a bit odd but aim to gauge interest and preferences. For instance, individuals are prompted to consider whether they would find a user-friendly, free online tax preparation tool beneficial for filing both their federal and state taxes.

The survey also asks participants if they would prefer the federal government or private companies to manage the free tax filing and application process, which seems like a pretty significant question to ponder.

Meanwhile, some Congressional Republicans argue that the current IRS system is a waste of taxpayer money, especially since other free options exist. Yet, with so many choices available, taxpayers often find it confusing to pick the best program for their needs. Additionally, there are programs that impose income limits, which complicates accessibility. Critics of private companies assert that they sometimes prioritize profits over taxpayer interests, which raises concerns about the quality of service provided.

Interestingly, Elon Musk, a prominent advocate for efficiency in government, has supported the elimination of the IRS’s free filing option. Just days after Trump took office, Musk made a significant post on a social media platform, indicating that certain functionalities related to the IRS’s direct filing had been “deleted.”

The Oregon Department of Revenue is actively encouraging residents to participate in the IRS inquiry. Oregon itself has rolled out a free tax return system, dubbed Direct File Oregon, for the 2023 tax year. The aim for the 2024 tax year is to streamline the tax filing process, making it more user-friendly in coordination with the IRS.

David Gerstenfeld, the Director of the Oregon Department of Revenue, emphasized the importance of facilitating smoother pathways for taxpayers when submitting their returns. He remarked, “It’s crucial for Oregonians to leverage this opportunity to provide the IRS with meaningful feedback on free tax filing options. We are committed to creating a transparent and straightforward experience for our customers, and our no-cost filing choices help fulfill that goal.”

Federal officials noted that those taking part in the survey can do so anonymously. Access to the survey is available online.