"The program, which debuted in 2024, was a big shift from the decades-long IRS policy of not competing with the tax prep industry in offering its own free, online tax filing service for Americans. Many Republicans had opposed Direct File, and tax prep companies also lobbied against it. Still, most of the taxpayers that used Direct File earlier this year - over 296,500 - gave it high marks."
"In an email sent from the IRS to 25 states, the tax agency thanked them for collaborating and noted that "no launch date has been set for the future." "IRS Direct File will not be available in Filing Season 2026," says the Monday email, obtained by Nextgov/FCW and confirmed by multiple sources. It follows reports that the program was ending and Trump's former tax chief, Billy Long, remarking over the summer that the service was "gone.""
The IRS notified 25 states that offered Direct File in 2025 that the program will not be available in Filing Season 2026 and that no future launch date is set. Direct File debuted in 2024 as a free government online tax filing option, departing from the IRS's previous non-competition policy with tax-prep firms. Many Republicans and tax-prep companies opposed the service. More than 296,500 taxpayers used Direct File earlier this year and gave it high marks. Users can no longer access the Direct File website and are directed to IRS online accounts for transcripts. A law signed this summer required a task force to explore public-private partnerships to replace Direct File. The long-standing Free File partnership remains underused, with about 3% of eligible taxpayers using it and some members steering users toward paid products. The IRS did not respond to a request for comment.
Read at Nextgov.com
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