The Trump administration plans to eliminate the Direct File program, an electronic system for filing tax returns directly to the IRS for free, which was developed during Joe Biden’s presidency. While users found the program easy and economical, Republican lawmakers and tax preparation companies argued that it was a waste of taxpayer money as free filing programs already exist. The future of Direct File was made clear when IRS staff were told to stop working on its development for the 2026 tax filing season.
Critics of Direct File, such as David Williams of the Taxpayers Protection Alliance, cited the program’s costs and issues like taxpayer confusion. The program accepted 140,803 returns in 2024, but faced backlash from private tax preparation companies who saw it as a threat to their profits. Commercial tax preparation company Intuit called Direct File a drain on IRS resources and a waste of taxpayer dollars.
Supporters of Direct File, including former architect of the program and CEO of Code for America, Amanda Renteria, see its elimination as a betrayal of public trust and a setback for government efficiency. Sen. Elizabeth Warren accused Trump and Musk of going after Direct File to benefit tax prep companies at the expense of taxpayers. The decision to end Direct File has sparked controversy and debate over the future of tax filing services in the US.
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