The Trump administration is planning to end the free tax filing service developed during the Biden administration, The Associated Press reported, citing two people familiar with the decision.
The IRS’s “Direct File program” allows Americans to file their tax returns directly to the agency for free online. The electronic system launched as a pilot program in 2024 and was made permanent last May.
But, in mid-March, the IRS staff assigned to the program were told to stop working on it for the 2026 tax filing season, the two sources told the AP.
The Hill has reached out to the White House for comment.
The Inflation Reduction Act of 2022 tasked the IRS with developing a “direct file” system, and the Biden administration spent tens of millions developing the program.
But the program has faced backlash from Republicans, who say it’s a waste of taxpayer money, and from private tax filing services, whose businesses rely on taxpayers’ willingness to spend money on preparing their taxes.
Some critics have also pointed out free services exist for tax return help, but, according to the AP, the average American still pays $140 per year to file their tax returns.
The fate of the program has been unclear in recent months, as the Trump administration has sought to slash government spending.
Elon Musk, senior adviser to the president, said earlier this year he “deleted” 18F, a digital services agency in the General Services Administration (GSA) that worked on projects like Direct File.
The Associated Press contributed.
