The Internal Revenue Service (IRS) has announced that it will discontinue the Direct File program, a free tool that allowed taxpayers to file their taxes directly with the agency without the need for intermediaries.
This decision may have a significant impact on how millions of Americans file their taxes beginning in 2026.
What is the Direct File program?
The pilot program began in 2024 and will be expanded to 25 states in 2025. It enabled people with simple tax situations to file their returns for free and directly on the IRS website.
According to the Treasury Department, more than 30 million people were eligible to use it in 2025, and nearly 300,000 taxpayers did so during the previous tax season.
Why would Direct Fire be removed?
IRS Commissioner Bill Long confirmed that the program will be discontinued after a single full season of operation. During a tax professionals’ summit, he stated that “Direct File is no more” and that his priorities will be system modernization and more efficient audits.
Some political sectors have criticized the program as unnecessary and costly, while others see it as an important tool for democratizing access to tax filing.
What alternatives are left?
The IRS’s Free File program, which partners with private companies to provide free services to certain taxpayers, will continue despite the discontinuation of Direct File. However, this system has limitations, such as income and state restrictions, making it less accessible than Direct File.
Eliminating the program may force many taxpayers to pay for tax preparation services, even if their returns are straightforward.
Impact on taxpayers
The disappearance of Direct File could translate into higher costs and more complications for millions of people. Those who previously filed at no cost may now be forced to turn to paid software or professional preparers, which is an additional burden, especially for low-income households.
Users valued the system’s transparency, simplicity, and freedom, and its removal could lead to taxpayer distrust and frustration.
If the IRS permanently eliminates the Direct File program, millions of Americans may face higher costs and less access to tax filing in 2026. While there are other options, none provide the same level of simplicity, accessibility, and direct control as this pilot system.
