New Legislation Ends IRS Direct File—What’s Next for Taxpayers?

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The IRS’s Direct File program—that rare slice of government tech that actually worked and saved you money—just got the axe.

According to The Verge, IRS Commissioner Billy Long told a summit this week that the tool is “gone,” crediting its demise to the Trump administration’s latest legislative sweep.

“I don’t care about Direct File. I care about direct audit,” Long said, according to Bloomberg Law.

Direct File was supposed to be a game-changer: launched in 2023, it let regular people in select states file their federal taxes online, directly with the IRS, without shelling out for TurboTax or H&R Block.

But before it could roll out nationwide, the administration’s “Big Beautiful Bill” set up a task force to explore replacement options, effectively mothballing the whole project.

As reported by CNBC, the IRS says it’s now waiting for a Treasury report on potential public-private alternatives—a classic political move that keeps options open while killing momentum.

The move has infuriated lawmakers like Senator Elizabeth Warren, who accused the administration of handing a “huge handout to giant tax prep companies that rip Americans off.”

The Associated Press notes that the tax prep industry has fiercely lobbied against Direct File since its inception, worried about losing billions in annual business.

So, for now, filing your taxes for free with the government is off the table—unless you count the privilege of paying Intuit’s “special service fee” for the honor of doing your civic duty.

Do you see this as a win for big tax prep companies—or just politics as usual? We want to hear your take! Drop your thoughts in the comments below, or join the conversation on Facebook and Twitter.