"According to Sen. Warren, TurboTax parent company Intuit donated more than $1 million to Trump's inauguration and has lobbied heavily against the program. (Companies like TurboTax offer similar tax filing services, but for a fee.)"
"Under the Direct File Act, taxpayers would not only have the option to file their taxes directly to the IRS, but it would also ensure that the IRS doesn't enter into agreements that 'restrict its ability to provide free online tax preparation or filing services.' The IRS would have to enable 'seamless integration' between state tax filing systems and Direct File, as well as publish annual reports on Direct File usage."
"The Biden administration first started testing the IRS Direct File system in select states during the 2024 tax season, and it even expanded the system to 25 states in 2025. But uncertainty surrounding IRS Direct File swirled after President Donald Trump came into office, until IRS head Billy Long confirmed that it's 'gone' last August."
The Direct File Act, sponsored by Senators Elizabeth Warren, Chris Coons, and Ron Wyden, seeks to reinstate IRS Direct File, a free tax filing option that allows taxpayers to file directly with the government. The Biden administration piloted the program in select states during 2024 and expanded it to 25 states in 2025, but the Trump administration eliminated it in August. The bill would prevent the IRS from entering agreements restricting free online tax services, mandate seamless integration with state systems, require annual usage reports, and ensure Direct File availability to at least 50 percent of taxpayers in participating states by 2028. Critics point to TurboTax parent company Intuit's $1 million donation to Trump's inauguration and heavy lobbying against the program as evidence of corporate influence.
Read at The Verge
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