Taxpayers across 25 states are facing a significant shift in how they manage their tax filings, as the IRS has announced the termination of its free Direct File program, originally implemented during the Biden administration. The agency confirmed the closure with a brief statement on the Direct File login page, which reads, “Direct File is closed. More information will be available at a later date.”
This announcement has left many current users and former beneficiaries of the service in a state of uncertainty, as details remain sparse. Notably, those who had used the Direct File program will no longer have direct access to their prior tax returns. Instead, they will need to submit a formal request to obtain copies of previous filings, complicating the process for taxpayers who may need this information for various reasons.
In an email circulated among state comptrollers, IRS official Cynthia Noe clarified that “IRS Direct File will not be available in Filing Season 2026,” confirming the program’s end without specifying any timeline for a potential resurrection.
Treasury Secretary and IRS Commissioner Scott Bessent commented on the agency’s decision, suggesting that more effective alternatives exist beyond Direct File. He noted that its usage was relatively low, stating, “It wasn’t used very much. And we think that the private sector can do a better job.”
A recent request under the Freedom of Information Act from The Center for Taxpayer Rights revealed that the number of taxpayers utilizing Direct File had seen substantial growth, with 296,531 returns accepted during the 2025 filing season. This marked a significant increase from 140,803 accepted returns in the program’s inaugural year of 2024. The initiative was designed for taxpayers with an Adjusted Gross Income of $84,000 or less and operated in collaboration with eight private tax preparation companies to provide these services to eligible individuals.
Despite the growing acceptance of the Direct File program, it has faced criticism from some Congressional Republicans, who argue that the initiative wastes taxpayer money. They have pointed out the availability of other free tax-filing options dependent on various taxpayer statuses, questioning the need for a government-run service. Additionally, private tax preparation companies have voiced their disapproval, as the industry generates substantial revenues by charging fees for tax filing services.
As the landscape of tax filing transitions, the average American continues to bear the burden of costs associated with preparing tax returns, often spending about $140 annually. The closure of the Direct File service adds a layer of complexity for taxpayers in the affected states, as they will need to seek out alternative options for filing their taxes come 2026.
