After a limited pilot and one full filing season, the Internal Revenue Service will discontinue its Direct File program, according to Commissioner Bill Long.
Funding for research to “replace any direct e-file programs run by the Internal Revenue Service” is part of President Donald Trump’s big spending and policy plan.According to Bloomberg Law, Longs stated at a gathering for tax professionals on July 28 that the scheme is already “gone.”
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“You’ve heard of Direct File, that’s gone,” Long stated. “That was cleaned out by big, gorgeous Billy. Direct File doesn’t matter to me. Direct audits are important to me.
The program’s future has not been confirmed by the agency.
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In an emailed comment to CNBC Make It, an IRS representative said, “Commissioner Billy Long is committed to modernizing the IRS and providing a taxpayer experience that meets today’s expectations, which includes giving taxpayers transparency into the status of their tax returns and audits.”
“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.”
In some states with straightforward tax circumstances, residents could submit their taxes directly with the IRS for free under the Direct submit program. In 2024, the initiative was piloted in 12 states by the agency; in 2025, it was extended to 13 more. The Treasury Department estimates that 30 million Americans were eligible to use the filing option in 2025.
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Republicans have criticized the initiative as being excessive and a waste of federal resources. According to an April Associated Press article, the Trump administration had already planned to discontinue the Direct File program before the policy megabill was introduced.
According to an internal IRS study obtained by Nextgov/FCW, 94% of customers who responded to an IRS survey described their experience using Direct File as “excellent” or “above average,” with nearly 300,000 filers using it for the 2025 tax season.
The IRS announced that taxpayers who have not yet filed their 2024 taxes but obtained an extension can still use Direct File to submit their returns by the deadline of October 15.
Taxpayers may still be able to file their taxes for free even if Direct File is discontinued by the following year’s tax season.
There are several eligibility restrictions, such as adjusted gross income and state of residence, but the IRS also offers a free filing program in which the government collaborates with outside tax preparation software providers to offer services to taxpayers. The IRS questionnaire tool can be used to choose a suitable mate.
The IRS also administers the Volunteer Income Tax Assistance program, which provides free in-person tax preparation assistance to individuals with disabilities, limited English proficiency, and annual incomes under $67,000 for 2025.
By using the IRS’s free fillable forms and sending them straight to the IRS, you can also do your own taxes.
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