Republicans are moving to officially end the IRS Direct File established under the Biden administration while proposing a new task force to revamp the Free File program. The GOP aims to create a new public-private partnership for free tax filing that would replace both Direct File and Free File. This proposal includes a $15 million allocation for fiscal 2026 to study the costs and feasibility of the new initiative. This action follows Democrats' previous attempts to assess Direct File's viability, indicating ongoing partisan divisions over tax filing methods in the U.S.
The provision seeks to formally dismantle the IRS Direct File system launched under the Biden administration, which provided free filing services and was well-regarded by users.
Republicans' proposal includes the establishment of a task force tasked with creating a new public-private partnership to replace both Direct File and the long-standing Free File program.
The $15 million allocated in fiscal 2026 for the task force aims to explore the viability and potential costs of revamping free tax filing systems for taxpayers.
Democrats had proposed a similar assessment of Direct File in their 2022 reconciliation bill, highlighting the ongoing ideological battle over tax preparation in the U.S.
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