Connect with us

Business

IRS Confirms End of Direct File Tax Program for 2026

Published

on

Irs Direct File Termination News

WASHINGTON — The IRS has announced that its free online tax filing system, Direct File, will not be available for the 2026 filing season. The decision was communicated in an email sent on November 5 to state comptrollers involved in the program.

In the email, IRS official Cynthia Noe informed recipients that “IRS Direct File will not be available in Filing Season 2026” and noted that “no launch date has been set for the future.” This move effectively ends a project that aimed to make filing easier and faster for taxpayers.

Direct File was launched in 2024 as a pilot program in 12 states, later expanding to 25 states. It was designed to allow eligible taxpayers to file their federal tax returns directly with the IRS, utilizing funds from the Inflation Reduction Act. However, it faced criticism from Republican lawmakers and commercial tax preparation companies, leading to its downfall.

Former IRS Commissioner Billy Long stated earlier in the summer that Direct File was “gone.” Critics argued the program competed with private sector tax software providers and that the IRS invested millions in its launch.

The program garnered positive feedback, with over 296,500 taxpayers using it in the 2025 tax season, a significant increase from 140,803 users in 2024. Taxpayers reported that Direct File improved their trust in government. Nevertheless, legislators, driven by opposition from tax prep companies, have sought its elimination.

Treasury Secretary Scott Bessent mentioned alternatives to Direct File, stating its low usage contributed to the decision. The IRS has encouraged taxpayers to access their returns through their online accounts or request copies via mail.

Supporters of Direct File, including some Democratic lawmakers, have criticized the decision. Sen. Elizabeth Warren stated, “Thanks to Donald Trump, giant tax prep companies are popping champagne, while Americans are forced to spend more time and more money to file their taxes.” Advocates argue the elimination of Direct File poses a setback for tax filing efficiency.

The Direct File website currently displays a notice stating, “Direct File is closed. More information will be available at a later date.” As lawmakers continue to navigate the future of tax filing options, taxpayers are left waiting for clarity further.