According to Forbes, the IRS has officially killed its Direct File program for the 2026 tax filing season, despite the program saving taxpayers $5.6 million in filing costs and delivering over $90 million in refunds during its limited 2024 pilot. The program had expanded in 2025 to include more states and handle more complex returns after Treasury Department officials declared it would become permanent. Despite 90% of users rating their experience as “Excellent” or “Above Average” in surveys of over 11,000 participants, the Trump Administration has now shelved the controversial program. Former Direct File users can no longer access their accounts and must submit Form 4506 to retrieve copies of their returns, while the IRS website simply states “Direct File is closed” with no official explanation to taxpayers.
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The political battle behind your tax return
Here’s the thing about Direct File – it was always political. The program emerged from the Inflation Reduction Act, which required the IRS to study creating a free direct filing system. Republicans in Congress hated the idea from day one, seeing it as government overreach into private industry. But the numbers told a different story – 47% of Direct File users had paid to file their taxes the previous year, and 16% hadn’t filed at all. This wasn’t just about convenience; it was about accessibility.
Now the program’s replacement looks suspiciously familiar. The One Big Beautiful Bill Act creates a task force to study – wait for it – “public-private partnerships which provide for free tax filing.” They’ve allocated $15 million for this study. Sound familiar? That’s exactly the same amount and approach used to create Direct File in the first place. It’s like they’re making taxpayers pay twice to figure out the same solution.
Why “free” filing isn’t really free
So what’s replacing Direct File? The existing Free File program, which is basically a partnership between the IRS and tax software companies. But here’s the catch – in 2019, when 70% of taxpayers were eligible for Free File, only 3% actually used it. Why? Because companies like Intuit and H&R Block were famously caught hiding their free options from search engines and steering people toward paid products.
Remember that ProPublica investigation? They found that despite qualifying for free filing, many people ended up paying hundreds of dollars. One Forbes staffer paid $118.64 to file with TurboTax even though she qualified for free filing. The companies have since been forced to stop hiding their free options, but both Intuit and H&R Block have now left the Free File program entirely. So much for that public-private partnership.
What happens now for taxpayers?
If you used Direct File last year, you’re basically out of luck. You’ll need to submit Form 4506 to get copies of your returns, which adds paperwork and waiting time. And for next year? You’re back to the same old options – either pay up or navigate the remaining Free File providers like FreeTaxUSA and TaxAct.
There is some hope though. Representative Emilia Sykes introduced the “Get Your Money Back Act” to not only save Direct File but expand it. The bill was referred to committee in June 2025, but there’s been no movement since. Meanwhile, Senator Ron Wyden isn’t holding back, calling this move “stealing from working class taxpayers to pad the profits of giant, rent-seeking tax software companies.”
Basically, we’re right back where we started. The government studied the problem, built a solution that taxpayers loved, then killed it to protect private industry profits. And taxpayers? We’re the ones who get stuck with the bill – again.
