The Internal Revenue Service (IRS) has confirmed the termination of its Direct File service, a free tax filing option introduced in 2024. The program was designed to provide a streamlined way for eligible taxpayers to file their taxes directly with the IRS online, bypassing third-party services.
The decision follows the conclusion of a one-year pilot program initiated under the Biden administration, followed by a full filing season in 2025.
According to The Mirror, the IRS’s move marks the end of a significant trial period for the service. Despite its initial success, the program will no longer be available moving forward.
What Was Direct File?
Direct File was designed to help taxpayers with simple tax situations by providing a free and direct filing option through the IRS. Eligible individuals in select states could bypass third-party tax services and submit their tax returns directly with the agency. The program aimed to assist approximately 30 million Americans in 2025 alone, according to the U.S. Treasury.
The service initially launched in 2024 with a pilot in 12 states, and it expanded to an additional 13 states in 2025. By the 2025 tax season, around 300,000 filers used the service, and 94% of users rated their experience as “excellent” or “above average” based on an internal IRS survey.
Why Is the Program Ending?
IRS Commissioner Bill Long confirmed the program’s end following a significant policy shift. The move is tied to a provision in President Donald Trump’s ‘Big Beautiful Bill’, which includes funding to replace any direct e-file programs run by the Internal Revenue Service. Long explained that his focus now lies on direct audits, rather than facilitating tax filing through the IRS.
“You’ve heard of Direct File, that’s gone. Big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit,” Long said during a speech at a tax professional summit.
This decision aligns with the broader Republican stance that views Direct File as an unnecessary expenditure.
An IRS spokesperson stated:
“Commissioner Billy Long is committed to modernizing the IRS and providing a taxpayer experience that meets today’s expectations, which includes giving taxpayers transparency into the status of their tax returns and audits.”
The spokesperson added that they look forward to Treasury’s forthcoming report to Congress on the Direct File program and potential alternatives, including public-private partnerships.
Alternatives for Free Filing
Although Direct File will be discontinued, the IRS still offers other free tax filing options. Taxpayers can file through third-party partners provided by the IRS, based on income and residency criteria. Additionally, low-income taxpayers can benefit from the Volunteer Income Tax Assistance (VITA) program. Those who prefer a do-it-yourself approach can also use the IRS free fillable forms.
Impact on Taxpayers and Future Developments
The program’s cancellation raises questions about the future of taxpayer services at the IRS, particularly regarding digital tools. While Direct File’s elimination may be seen as a step backward, it highlights the IRS’s continued efforts to modernize its processes and provide greater transparency in audits and tax return status. The Treasury Department is expected to release a report to Congress later this year that will further evaluate potential public-private partnerships to fill the gap left by Direct File.
The end of Direct File could alter the landscape for millions of taxpayers who valued the simplicity and cost-effectiveness of the program. However, free filing alternatives remain available, and the IRS is working to ensure that taxpayers still have options to file their returns at no cost. Taxpayers who received an extension to file their 2024 taxes can still use the program until the deadline on October 15, 2025.
