Taxpayers lose free IRS tax filing service as Trump administration scraps Biden initiative - what to know

IRS Direct File: Millions of Americans who once qualified to file their taxes directly with the IRS for free will need to look for alternatives in 2026, after the Trump administration officially eliminated the IRS Direct File program, as per a report.

Why the IRS ended the Direct File program

The free filing service, launched in 2024 under former US president Joe Biden, allowed eligible taxpayers to submit their federal returns directly to the Internal Revenue Service without using third-party tax software. But the program was shut down in 2025, following sustained criticism from Republicans who argued it was an unnecessary expense and that private companies could handle tax filing more effectively, as per The Mirror report.

Former IRS Commissioner Bill Long shared the decision last year, saying Direct File had been wiped out by US president Donald Trump’s “Big, Beautiful Bill,” which included replacing “any direct e-file programs run by the Internal Revenue Service,” as per The Mirror report.


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Long reportedly said at the time, “You’ve heard of Direct File, that’s gone. Big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit,” as quoted by The Mirror.

Treasury Secretary Scott Bessent, who is now serving as acting IRS commissioner, echoed that view, telling reporters there are “better alternatives” to Direct File and that the private sector can “do a better job.”

What IRS Direct File offered taxpayers

Direct File was designed as a step-by-step online platform that guided taxpayers through the filing process at no cost. It eliminated the need for paid tax preparation services for many filers and was especially appealing to people with simple tax situations.

How many Americans were eligible for Direct File

According to the Treasury Department, an estimated 30 million Americans were eligible to use the service in 2025. Twenty-five states participated in the program, including California, Texas, Florida, New York, Pennsylvania, Illinois and Washington state. The Hill reported that nearly 300,000 Americans used Direct File during its most recent tax season.

With the program now gone, the IRS says it is working on alternative ways to improve the taxpayer experience. An IRS spokesperson, told CNBC Make that the IRS is working to provide “a taxpayer experience that meets today’s expectations, which includes giving taxpayers transparency into the status of their tax returns and audits," adding, “We look forward to Treasury’s forthcoming report to Congress on the Direct File program and on potential public-private partnership alternatives to Direct File, as required by the One Big Beautiful Bill," as quoted by The Mirror.

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What is IRS Free File and who qualifies

Although Direct File is no longer available, taxpayers still have some free options.

The IRS Free File program remains in place and allows eligible taxpayers to file using guided tax preparation software provided by private companies. To qualify, household income must be under $84,000.

Taxpayers who earn more than that can use Free File Fillable Forms, which are electronic versions of IRS paper forms. However, the IRS warns that this option requires filers to do their own calculations and fully understand the tax instructions.

What taxpayers should know before filing taxes in 2026

The IRS has mentioned in its Free File Fillable Forms guide that, “If you are not comfortable with completing a paper return, using only the forms and instructions as a guide to file a correct return, this program is not for you,” as quoted by The Mirror.

FAQs

What is IRS Direct File?

IRS Direct File was a free online system that allowed taxpayers to file directly with the IRS without third-party software.

When was IRS Direct File launched?

The program launched in 2024 under former president Joe Biden.