The Trump administration is set to eliminate the IRS’ Direct File program, according to The Associated Press, citing two individuals familiar with the matter. The program is a free electronic system for filing tax returns directly to the agency.
The program had been in limbo since the start of the Trump administration as the Department of Government Efficiency has gutted different departments across the federal government including 18F, the agency that worked on technology projects including Direct File.
According to the people familiar with the situation, Direct File's future became clear when the IRS staff who were assigned to the program were told mid last month to stop working on its development for the 2026 tax filing season.
The Associated Press reports that Direct File was rolled out as a pilot program in 2024 after the IRS was assigned to examine how to establish a “direct file” system as part of the money it got from 2022's Inflation Reduction Act.
The Democratic administration spent tens of millions of dollars developing the program. Last May, the agency announced that the program would be made permanent.
The IRS accepted 140,803 returns filed by taxpayers utilizing Direct File in the 12 states where it was available last tax season. It was expanded to include half the country this year. It is not yet clear how many taxpayers have used Direct File this year.