Report: Trump to end IRS Direct File program for free tax filing

The Trump administration is planning to end the IRS Direct File program that allows tax returns to be filed directly to the IRS for free, sources told The Associated Press. 

The program had been in limbo since the start of the Trump administration. Elon Musk, who heads the Department of Government Efficiency, posted in February on his social media site, X, that he had "deleted" 18F, a government agency that worked on technology projects such as Direct File.

There was some hope that Musk and his DOGE team of computer programmers would take over Direct File and improve it. But according to AP, the IRS staff assigned to the program were told in mid-March to stop working on its development for the 2026 tax filing season.

What is IRS Direct File? 

The backstory:

Direct File was rolled out as a pilot program in 2024 after the IRS was tasked with looking into how to create a "direct file" system as part of the money it received from the Inflation Reduction Act signed into law by Biden in 2022. The Biden administration spent tens of millions of dollars developing the program.

The Trump administration is eliminating the IRS Direct File system that allows taxpayers to file returns directly with the IRS at no cost. (Photo illustration by Michael Bocchieri/Getty Images)

Last May, the agency announced that the program would be made permanent. But the IRS has faced intense blowback to Direct File from private tax preparation companies that have made billions from charging people to use their software and have spent millions lobbying Congress. The average American typically spends about $140 preparing returns each year.

What they're saying:

Republican lawmakers and commercial tax preparation companies complained it was a waste of taxpayer money because free filing programs already exist, although they are hard to use.

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David Williams, president of the Taxpayers Protection Alliance, which describes itself as a nonpartisan organization, said Direct File was "problematic" from day 1, citing the program's costs and noting that many people who started the process never finished. 

"From hidden costs to taxpayer confusion, the program is riddled with issues," Williams said.

The other side:

IRS Direct File users said it made tax filing easy, fast and economical. 

Adam Ruben, a vice president at the liberal-leaning Economic Security Project, said "it is an outrage to see everyday taxpayers play no role in this decision." 

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"Cutting costs and saving money for families were just empty campaign promises," he added. 

Amanda Renteria, CEO of Code for America, which worked with the IRS to create a state tax filing integration program for Direct File, called the Trump administration’s decision "a betrayal of public trust at precisely the time government should be demonstrating its ability to deliver basic services effectively."

By the numbers:

The IRS accepted 140,803 returns filed by taxpayers using Direct File in the 12 states where it was available last tax season. It was expanded to include half the country this year, but it’s unclear how many taxpayers have used Direct File this year.