Nov 20, 2025
“Free” and “simple” aren’t typically associated with tax filing, but for nearly 300,000 Americans who used IRS Direct File in 2025, the process itself was not only free, but easier.
Now the Trump administration is ending the short-lived online program, launched in 2024, despite high initial uptake and the support of nearly 75% of taxpayers (1).
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Treasury Secretary Scott Bessent, who doubles as IRS commissioner, said the decision to axe the program was based on an understanding that there are “better alternatives” (2).
“It wasn’t used very much,” Treasury Secretary Scott Bessent said. “And we think the private sector can do a better job.”
Critics argue the end of the IRS Direct File will only harm the average taxpayer while enriching tax software companies.
Forces lined up against the free online tax tool
The IRS launched the free tax-filing program in 12 states in 2024 and rolled it out to a full 25 states for the 2025 tax season, opening up eligibility to 32.2 million taxpayers.
The Center for Taxpayer Rights reports that 296,531 taxpayers used it in 2025 — a 111% increase over 2024.
The online program was designed to simplify and streamline the tax filing process. According to a Center for Taxpayer Rights poll, 94% of filers who used it found the experience “excellent” or “above average (3)”.
But from the beginning private-sector multinationals like Intuit (parent of TurboTax) and H&R Block lobbied hard against IRS Direct File and spent millions to get the program killed.
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As Bloomberg reports, H&R Block argued openly that the free federal tax-filing program would directly hit their revenue and profitability (4).
This past summer, the Department of Government Efficiency (DOGE) questioned funding for this Biden-era service, kicking off speculation of its demise in the summer of 2025 (5).
The fusion of a change in leadership and millions spent in lobbying was simply too strong and dealt the fatal blow to IRS Direct File.
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Alternatives to IRS Direct File
Unfortunately for taxpayers who enjoyed IRS Direct File, there won’t be an equally simple free way to file taxes with the IRS next year.
The only remaining alternative to IRS Direct File is IRS Free File, a collaboration between the IRS and private tax preparation companies. But this public-private platform is notorious for its complexity (6)
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Not only is it hard to use Free File, there are special income limits and conditions for each provider, and not everyone who qualifies on paper will actually find a free option. Taxpayers who have used it report being led to for-fee private tax-filing services.
All this means that many people will have to turn back to commercial tax software. Although it costs money to use these services, they remain the most convenient option for DIY filers.
But that doesn’t mean there are no other free tax-filing options or resources.
For instance, the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs continue to offer in-person assistance to qualifying taxpayers.
These volunteers can help you file for free and ensure that you claim any eligible credits.
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Also, just because Direct File is gone doesn’t mean it’s gone forever. As the Washington Post reports, advocates are already pushing for states and nonprofits to keep the spirit alive through open-source tools or hybrid partnerships (7).
There’s also growing talk of “pre-filled returns,” where the IRS could use wage and income data it already has on file to auto-generate your return (8). That could put the U.S. on track to bring its online tax service on par with programs in countries like Denmark or Norway (8).
And considering the initial positive response to IRS Direct File, it’s not unreasonable to expect a similar service to resurface with public support and future policymaker backing.
Until then, however, taxpayers will have to make do with what’s available.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Tax Policy Center (1, 6) Associated Press (2); The Center for Taxpayer Rights (3); Bloomberg (4); Wired (5); Washington Post (7); National Bureau of Economic Research (8)
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Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.
