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Trump is Ending Free IRS Tax Filing Program: What to Know
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The Trump administration is planning to shut down the IRS’s Direct File program, a free, government-run electronic tax filing system launched under President Joe Biden, two individuals familiar with the decision told the Associated Press.
The program has been in limbo since President Donald Trump returned to office. It had been touted as a major success of Biden-era investments in government modernization but has faced consistent opposition from Republican lawmakers and the commercial tax prep industry.
Although free filing options technically exist, critics of the current system have long argued that they are confusing and hard to navigate. Direct File aimed to solve that, and after a pilot year in 2024, the IRS announced plans to expand it nationally.
Yet since the start of the Trump administration, Elon Musk’s Department of Government Efficiency (DOGE) has led sweeping cuts to federal programs, including the shutdown of 18F, the tech agency that helped build Direct File. Musk hinted at the rollback in February, posting on X that he had “deleted” 18F. Hopes that his tech team might take over the system faded when IRS staff were quietly told in March to stop working on Direct File for the 2026 filing season.
Associated Press
The decision has drawn criticism from progressives and consumer advocates. Adam Ruben of the Economic Security Project called the move “an outrage,” accusing the administration of breaking campaign promises to lower costs for working families. He added, “Cutting costs and saving money for families were just empty campaign promises.”
The IRS accepted over 140,000 returns through Direct File during its limited 2024 launch in 12 states, with plans to reach half the country in 2025. It’s unclear how many Americans used the system this year before development was halted. Supporters say Direct File threatened the profit models of private tax prep companies, which charge the average filer around $140 annually and have spent millions lobbying against the public alternative.
Senator Elizabeth Warren, a leading advocate for the program, accused Trump and Musk of protecting corporate interests. “They’re going after Direct File because it stops giant tax prep companies from ripping taxpayers off,” she said. “Americans want a free and easy way to file their taxes—Trump and Musk want to take that away.”
This is a developing story and will be updated as more information is available.
Reporting by the Associated Press contributed to this story.
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