The Internal Revenue Service (IRS) of the United States sent an email to state auditors who had participated in the Direct File program on November 3, announcing that the Direct File website will no longer be used during the 2026 tax season, with the exact launch date yet to be determined.
As of November 5, the Direct File website displayed a message stating that it had been closed and more information would be released later.
According to reports from The Washington Post and NextGov, state auditors who received the email confirmed that the program will no longer be available next year.
The program was developed and implemented during President Biden’s term, offering eligible taxpayers free access. However, Republican members of Congress criticized the program, labeling it as a waste of taxpayer money since free tax-filing programs already existed.
Launched in 2024 at a cost of millions of dollars, the Direct File program received partial funding from the Inflation Reduction Act signed by President Biden in 2022.
In May 2024, the IRS announced the permanent implementation of the program, prompting strong opposition from commercial tax-filing companies.
Scott Bessent, the current Secretary of the Treasury and Acting IRS Commissioner, stated on November 5 that the usage rate of the Direct File program was low and that the private sector could do a better job.
The Center for Taxpayer Rights submitted a request to the IRS under the Freedom of Information Act and obtained the latest assessment report on the project. The report revealed that in the 2025 tax year, 296,531 taxpayers used the Direct File system, up from 140,803 in 2024.
Since President Trump returned to office, the program has been at a standstill. In April of this year, the Trump administration planned to cancel the project, instructing staff members responsible for it to cease development for the 2026 tax season.
(Reference: Associated Press)