IRS Direct File won’t be available next year. Here’s what that means for taxpayers

By FATIMA HUSSEIN Associated Press WASHINGTON AP IRS Direct File the electronic system for filing tax returns for free will not be offered next year the Trump administration has endorsed An email sent Monday from IRS official Cynthia Noe to state comptrollers that participate in the Direct File project noted that IRS Direct File will not be available in Filing Season No launch date has been set for the future The activity developed during Joe Biden s presidency was credited by users with making tax filing easy fast and economical However it faced criticism from Republican lawmakers who called it a waste of taxpayer money because free filing programs already exist though they are formidable to use and from commercial tax preparation companies which have made billions from charging people to use their program Treasury Secretary Scott Bessent who is also the current IRS commissioner recounted reporters at the White House on Wednesday that there are better alternatives to Direct File It wasn t used very much he declared And we think that the private sector can do a better job Related Articles Gemini AI to transform Google Maps into a more conversational experience Shipping delays expected after UPS cargo plane crash Denver Water submits plans for operations campus replacing land going to Broncos Musk the trillionaire Debate over his Tesla pay package rages Greenwood Village approves residential project on long-empty acres The Center for Taxpayer Rights filed a Freedom of Information Act request for IRS latest evaluation of the campaign and the document says taxpayers submitted accepted returns for the tax season through Direct File That s up from the submitted accepted returns in Direct File was rolled out as a pilot undertaking in 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 The Democratic administration spent tens of millions of dollars advancing the initiative Last May the agency under Biden revealed that the operation would be made permanent But the IRS has faced intense blowback to Direct File from private tax preparation companies that have spent millions lobbying Congress The average American typically spends about preparing returns each year The operation had been in limbo since the start of the Trump administration as Elon Musk and the Department of Cabinet Efficiency slashed their way through the federal establishment But The Associated Press announced in April that the administration planned to eliminate the scheme with its future becoming clear after the IRS staff assigned to it were stated to stop working on its enhancement for the tax filing season As of Wednesday the Direct File website states that Direct File is closed More information will be available at a later date The Washington Post and NextGov first released on the email to state comptrollers confirming the plan would not be offered next year Adam Ruben a vice president at the liberal-leaning Economic Protection Project declared it s not surprising that the venture was eliminated Trump s billionaire friends get favors while honest hardworking Americans will pay more to file their taxes he announced