The IRS has officially announced that the IRS Direct File program will not be available for the upcoming tax season in 2026. An email from IRS official Cynthia Noe to state comptrollers participating in the program confirmed this decision, stating, “IRS Direct File will not be available in Filing Season 2026. No launch date has been set for the future.”
Initially developed during President Biden’s administration, the Direct File system was aimed at making electronic tax filing more accessible and cost-effective for taxpayers. Users praised the program for its ease of use and efficiency. However, it encountered significant pushback from Republican lawmakers who criticized it as an unnecessary expense for taxpayers, given that existing free filing options are reportedly convoluted. The commercial tax preparation industry also opposed the initiative, as it undermined their business model, which relies on charging for software and services.
Treasury Secretary Scott Bessent, currently also serving as IRS commissioner, stated that alternatives to Direct File are available and suggested that the private sector could provide better solutions. “It wasn’t used very much,” Bessent noted, emphasizing the government’s belief in the effectiveness of private-sector options for tax preparation.
According to a recent evaluation obtained by the Center for Taxpayer Rights through a Freedom of Information Act request, there was a notable increase in usage of the Direct File program. In the 2025 tax season, 296,531 taxpayers successfully submitted their returns, a significant rise from 140,803 in 2024. The program had been launched as a pilot in 2024 following funding provisions from the Inflation Reduction Act, which aimed to enhance taxpayer services.
Despite the earlier commitment under the Biden administration to make the program permanent, pressure from commercial tax preparation companies, which have invested heavily in lobbying against Direct File, ultimately impacted its fate. On average, taxpayers in the U.S. spend about $140 annually to prepare their tax returns.
The program’s status became precarious after the change in administration, with reports in April indicating plans to terminate it. Recently, updates on the Direct File website noted that “Direct File is closed” and that more information would be provided in the future.
Commenting on the outcome, Adam Ruben from the Economic Security Project remarked that the elimination of the program was not unexpected. He criticized the decision, suggesting it favored wealthy interests at the expense of ordinary Americans, who will now face higher costs in filing their taxes.
