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IRS Direct File
Founded2024
Area servedPeople filing taxes in the U.S.
OwnerInternal Revenue Service (IRS)
ServicesTax filing service
URLdirectfile.irs.gov
CommercialNo

Direct File is a free, online government service allowing eligible taxpayers to file their federal tax returns directly to the Internal Revenue Service (IRS). Direct File was designed to be guided, multi-lingual, interview-based, and accessible to taxpayers who have a variety of attitudes, aptitudes, abilities, and access needs.[1]

Background

During the 2021 tax filing season, the two most used tax-filing software programs (TurboTax and H&R Block) no longer participated in the Free File Program after the companies deliberately hid the free option from taxpayers.[2] Through the program commercial tax software companies in the Free File Alliance offer a free filing option to eligible U.S. taxpayers. In early 2022, because the two largest members of the Free File Alliance no longer provided free support to taxpayers through the program, there were renewed calls for the IRS to develop and offer their own free tax-filing option that was simple and easy to use and laid the groundwork for other modernization efforts for taxpayers.[3]

In 2022, President Joe Biden signed into law the Inflation Reduction Act, which included a call for the IRS to study and report on costs and feasibility of launching a free, government-run electronic tax filing program.[4] In May 2023, the IRS delivered the report to Congress outlining the feasibility of the potential free filing system.[5] Following the report, the U.S. Department of the Treasury directing for a limited IRS pilot to further test the concept.[6] Starting in the tax-filing season 2024, the IRS announced the launch of the Direct File pilot.[7][8] The initial pilot was developed with support from the U.S. Digital Service, 18F, and additional private-sector teams working alongside IRS and Treasury staff.[9]

Overview

The Direct File pilot program launched in the tax-filing season of 2024, allowing eligible taxpayers from 12 states to file their taxes for free.[7][8] The team launched the 2024 pilot in phases that allowed the team to start small to get it right before scaling to more taxpayers.[8]

Direct File was designed to be guided, multi-lingual in both english and spanish, mobile-first, interview-based, and accessible to taxpayers who have a variety of attitudes, aptitudes, abilities, and access needs.[1] Throughout the experience, taxpayers were also given the option to talk with an IRS customer support representative, view the math behind the refund or liability, access other IRS tax resources, and be guided to file their State tax return.[10] Over the course of the 2024 pilot, more than 3 million taxpayers checked to see if they were eligible, and over 140 thousand taxpayers submitted accepted returns.[1]

Reception

Direct File received

Under the second Trump administration

On February 2025, Sen. Ron Wyden announced that DOGE was at the IRS; an email was sent to the agency beforehand, asking officers to identify all "non-essential" contracts for termination.[11] Later that month, Elon Musk tweeted "deleted" in reference to a tweet about the Direct File pilot and in April, it was announced the program will not continue.[12][13]

See also

References

  1. ^ a b c "IRS Direct File Pilot Program Filing Season 2024 After Action Report" (PDF). Department of Treasury, Internal Revenue Service. Publication 5969 (5-2024) Catalog Number 94963W. May 3, 2024.
  2. ^ Kiel, Justin Elliott,Paul (2019-05-02). "TurboTax and H&R Block Saw Free Tax Filing as a Threat — and Gutted It". ProPublica. Retrieved 2025-06-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  3. ^ Matthews, Dylan (2021-08-13). "The IRS has a big opportunity to fix the way Americans file taxes". Vox. Retrieved 2025-06-17.
  4. ^ Kiel, Justin Elliott,Paul (2022-08-16). "Inflation Reduction Act Will Require the IRS to Study Free Tax Filing Options". ProPublica. Retrieved 2025-06-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  5. ^ Jones, John Hewitt (2023-06-28). "IRS advisory committee calls on agency to assess public awareness of existing free file tools". FedScoop. Retrieved 2025-06-17.
  6. ^ Kiel, Paul (2023-05-17). "The IRS Tiptoes Into Offering Free Online Tax Filing — and Possible Competition With TurboTax". ProPublica. Retrieved 2025-06-17.
  7. ^ a b "The IRS is launching a direct file pilot program for the 2024 tax season — here is how it will work". AP News. 2024-01-29. Retrieved 2025-06-17.
  8. ^ a b c Carrns, Ann (2024-01-05). "I.R.S. to Begin Trial of Its Own Free Tax-Filing System". The New York Times. ISSN 0362-4331. Retrieved 2025-06-17.
  9. ^ Heckman, Jory (2024-05-30). "IRS makes Direct File permanent option to file taxes online, invites all states to opt in". federalnewsnetwork.com. Retrieved 2025-06-17.
  10. ^ Lobosco, Katie (2024-01-25). "IRS set to launch its free tax filing pilot program. Here's how it will work | CNN Politics". CNN. Retrieved 2025-06-17.
  11. ^ Fields, Ashleigh (2025-02-13). "Democratic senator: 'DOGE is now at the IRS'" (Text). The Hill. Retrieved 2025-02-14.
  12. ^ Sahadi, Jeanne (2025-02-05). "Did DOGE really 'delete' the tech division that helped create the IRS Direct File free tax filing service?". CNN. Retrieved 2025-02-14.
  13. ^ "Trump administration plans to end the IRS Direct File program for free tax filing, AP sources say". AP News. 2025-04-16. Retrieved 2025-04-28.
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