The IRS Direct File program is no longer available. (Photo by Tasos Katopodis/Getty Images for Economic Security Project)
Getty Images for Economic Security Project
We knew that it was coming, but now we know for sure: Direct File, the free tax e-filing option offered by the Internal Revenue Service, has been shelved by the Trump Administration.
This week, reports began flying that the IRS had notified states via email that Direct File won’t be available next filing season. One of the participating states has confirmed the existence of the email to Forbes.
The IRS did not respond to a request for comment and hasn’t officially shared the news with taxpayers. But former users of Direct File could be in for a shock when they visit the IRS’ web site.
IRS.gov screenshot dated November 5, 2025.
Kelly Phillips Erb
If you click over to the part of the site that used to be the home of Direct File. a message simply states, “Direct File is closed. More information will be available at a later date.”
Notably, former Direct File users can’t log on to retrieve information from the site. A notice on the IRS’ web site says anyone who needs a transcript should instead log into their IRS online accounts.
The IRS also advises, “If you used Direct File to submit your return, you can retrieve a copy by submitting Form 4506, Request for Copy of Tax Return…If you used a different tool to submit your tax return, find out how to access your tax records.”
The Direct File Program
The controversial Direct File program allowed eligible taxpayers to file taxes directly with the IRS online for free. The word “controversial” is a nod to the fact that while the IRS touts the program as beneficial to taxpayers and says the initial feedback was overwhelmingly positive, some Republicans in Congress weren’t happy with the program.
As part of the Inflation Reduction Act, Congress tasked the IRS with delivering a report on, among other things, the cost of developing and running a free direct e-file tax return system. The report was to include he costs to build and administer each release, with a focus on multi-lingual and mobile-friendly features and safeguards for taxpayer data. The IRS released the report to Congress in May 2023.
According to the report, most taxpayers surveyed by the agency had interest in using an IRS-provided tool to prepare and file their taxes. At the time, the IRS indicated it hoped to make that a reality for some taxpayers for the 2024 tax filing season.
When the tax filing season opened in January 2024, the IRS announced a limited-scope pilot of Direct File, which it claimed would allow the IRS to evaluate the costs, benefits, and operational challenges associated with providing the option to taxpayers. The pilot, the IRS claimed, was a success. The tax agency said that Direct File users reported a high degree of satisfaction and quick answers to their filing questions.
In a GSA Touchpoints survey of more than 11,000 Direct File users, 90% of respondents ranked their experience with Direct File as “Excellent” or “Above Average.” Most survey respondents who filed taxes in the prior year reported having to pay to prepare their taxes last year. Among survey respondents, 47% of users paid to file their taxes last year, and 16% did not file last year at all. When asked what they particularly liked, respondents most commonly cited Direct File’s ease of use, trustworthiness, and that it was free. According to the IRS, taxpayers filed—for free—to obtain more than $90 million in refunds and saved an estimated $5.6 million in filing costs.
(You can read what some taxpayers had to say to Forbes about their experiences here.)
After the first year, the Treasury Department declared that Direct File would be a permanent, free tax filing option. The IRS also expanded the program in 2025 to include more states and the ability to handle a wider range of income, credits, and deductions.
Direct File During The 2025 Tax Filing Season
The free tax software program had been marked as safe for the 2025 season, with now-Treasury Secretary and Acting IRS Commissioner Scott Bessent committing to the program during his confirmation hearing. “I will commit that for this tax season … Direct File will be operative,” Bessent said.
However, less than 48 hours after the end of the regular tax filing season, reports flew that the program would be axed.
That was confirmed in May when the House version of what is now the One Big Beautiful Bill Act (OBBBA) included a provision to eliminate IRS Direct File. The original language directed Treasury to ensure that the IRS Direct File program has been “terminated” no later than 30 days after the bill became law. That bit didn’t survive.
But the final version of OBBBA includes a provision creating a task force to deliver a report on the “cost of enhancing and establishing public-private partnerships which provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income, and to replace any direct e-file programs run by the Internal Revenue Service.” The task force is also tasked with taking the pulse of the public on “opinions and preferences regarding a taxpayer-funded, government-run service or a free service provided by the private sector.” The amount of money earmarked is $15,000,000.
If you’re feeling a bit of deja vu, you’re not wrong. The Inflation Reduction Act of 2021—the law that led to the creation of Direct File—also established a task force to design a direct file tax return system. The cost? Also $15,000,000.
The Writing Was On the Wall
The change in the OBBBA language—to not completely eliminate the program—gave some taxpayers hope that the program was merely being tweaked. But the writing has been on the wall for some time.
In addition to the language in the OBBBA draft, former IRS Commissioner Billy Long had indicated that the program’s days were numbers. “You’ve heard of Direct File,” Long told the National Association of Enrolled Agents. “That’s gone. Big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit.”
(A month later, big beautiful Billy was also gone.)
What About Free File?
Despite the IRS axing Direct File, the Free File program remains in place. Free File is a program offered as part of a public-private partnership between the IRS and Free File Inc., formerly the Free File Alliance. Through this partnership, tax preparation and filing software providers make their online products available to eligible taxpayers.
Free File debuted in 2003, but not without controversy. It was developed to provide free e-filing services to most taxpayers, with the goal of helping the IRS meet the 80% e-file target established by the Restructuring and Reform Act of 1998.
At the time, many wondered why the federal government partnered with the private tax prep industry instead of creating its own software. In 2002, Treasury Secretary Paul O’Neill made it clear to then IRS Commissioner Charles Rossotti that the agency should partner with the private sector. As a result, the government entered into a memorandum of understanding pledging not to enter the tax return software and e-file services marketplace.
You’d assume taxpayers would flock to e-file for free. The e-file market did explode, but not necessarily for free services, leading to allegations that some providers were directing taxpayers to paid services. In 2019—the last year the Free File agreement was signed—up to 100 million taxpayers, or 70% of filers, were eligible to use Free File. The actual use was closer to 3%
In 2016, then-Forbes staffer Sam Sharf wrote an account of how, despite qualifying to file for free, it cost her $118.64 to file her 2014 tax return with TurboTax. A few years later, ProPublica wrote a series of articles focusing on the lengths to which it claims tax software companies went—such as extensive lobbying and hiding free options—to get taxpayers to pay for services. In April 2019, ProPublica noted, “Intuit has changed the code on its Free File page so that the actually free version of TurboTax is no longer hidden from Google and other search engines.” H&R Block was also accused of purposefully steering taxpayers away from free products.
The allegations created quite a stir—and resulted in litigation.
Today, tax preparation software companies are prohibited from hiding free filing services from Google or other search results pages. Additionally, if you can’t file for free after visiting a company’s Free File website, you must be able to return to the Free File website to find another offer. Each IRS Free File company must provide information when you don’t qualify, with a link to the IRS.gov Free File site.
Following the changes, two traditional Free File participants, Intuit and H&R Block, opted out of the program. Eight private-sector Free File partners provided online guided tax software products in 2025: 1040.com, 1040Now, EzTaxReturn, FileYourTaxes.com, FreeTaxUSA, OnLine Taxes, TaxAct, and TaxSlayer.
Last Gasps From Congress
Not everyone was ready to give up on Direct File. This year, U.S. Rep. Emilia Sykes (D-Ohio) introduced legislation to not only save, but expand, the Direct File program. The legislation, called the “Get Your Money Back Act,” would fully reinstate the Direct File program, while requiring states to opt in to the service.
Sykes officially introduced the legislation on June 30, 2025. It has since been referred to the House Committee on Ways and Means. There has been no additional action to date.
Responses To The News
Following the news that the program had been killed, Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) issued a statement, writing, “The Trump administration operates like a laser-guided weapon aimed at any useful public service that saves Americans time and money. The only thing Trump accomplishes by doing this is stealing from working class taxpayers to pad the profits of giant, rent-seeking tax software companies.”