It’s not a huge surprise. The program already seemed to be in trouble, with a Treasury official telling BI in April that it was a failed and disappointing program.
Republicans are officially planning to eliminate the IRS free direct tax-filing tool.
Trump’s “big beautiful bill” includes a provision aimed at terminating the program.
Republicans have characterized the tool as wasteful and an example of government overreach.
If Republicans on Capitol Hill succeed, the IRS’s free direct tax-filing tool will be eradicated for good. A 389-page tax bill unveiled by House Republicans on Tuesday features a clause directing the Secretary of the Treasury to abolish IRS Direct File within 30 days of the bill’s passage. It’s not a major surprise given the program’s troubled status, highlighted by a Treasury official’s remarks to BI in April, deeming it a failure.
Republicans contend that the tool, launched in 2024, is unnecessary and indicative of government excess. Conversely, Democrats argue that the program is a prime example of the government working efficiently for its citizens.
The bill is a critical aspect of what President Donald Trump and congressional Republicans have dubbed the “One Big Beautiful Bill,” and it is scheduled for markup in the House Ways and Means Committee on Tuesday. This fiscal measure, central to Trump’s legislative priorities, may undergo alterations as Republicans in both chambers negotiate differences over the coming weeks.
The White House has yet to respond to requests for comment. A spokesperson for Ways and Means Committee Chair Jason Smith pointed BI to a June 2024 statement by the Missouri Republican, which criticized the program. “This latest attempt to circumvent Congress and establish a new tax program only serves to further undermine the fraying trust between the agency and the public,” Smith remarked at that time.
Additionally, the bill allocates $15 million to explore the creation of a new public-private partnership intended to offer free tax filing for up to 70% of taxpayers. This initiative would supersede both IRS Direct File and other free tax-filing options.
