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The Trump administration is reportedly planning to end the IRS Direct File program, a free electronic system for filing tax returns directly with the agency. According to sources, this decision comes amid pressure from the multibillion-dollar tax preparation industry, which has long opposed the program. The IRS Direct File program, developed during President Joe Biden's tenure, was praised for making tax filing easier and more affordable for Americans.
The program was initially rolled out as a pilot in 2024, available in 12 states, and received high satisfaction ratings from users. It was set to expand nationwide for the 2025 tax season. However, the Trump administration's decision to terminate the program has drawn criticism from various quarters. Adam Ruben, a vice president at the Economic Security Project, told the Associated Press that the move is an "an outrage," emphasizing that it deprives taxpayers of a valuable service.
Despite its potential benefits, the program faced opposition from private tax preparation companies. David Williams, president of the Taxpayers Protection Alliance, criticized Direct File for its costs and complexity.
“From hidden costs to taxpayer confusion, the program is riddled with issues,” Williams told NBC News.