Senators demand to know the IRS' path forward following the end of Direct File

"They penned a letter to Scott Bessent, Treasury Secretary and acting IRS Commissioner, on Friday asking for more information about the IRS plan to double down on Free File, which relies on tax prep companies, in the absence of Direct File, which allowed users to file online directly with the government. The IRS officially canceled Direct File last fall after offering it to taxpayers in 25 states with relatively simple tax situations the year prior."

"The creation of Direct File was a big change from the IRS' longstanding practice of relying on private tax software companies to offer free, online options for most Americans to file their taxes under Free File. In their letter, Warren and King ask Treasury for details on how it promoted Direct File and Free File, whether it has implemented previous watchdog recommendations and how it will oversee Free File moving forward."

""Instead of letting Americans file their taxes online and for free with the IRS, the Trump administration is pushing a tax prep company program that has a history of misleading taxpayers into paying more," Warren told Nextgov/FCW in a statement. "Trump's attempts to replace Direct File with Free File is just another Trump scam.""

Senators Elizabeth Warren and Angus King opened an investigation into the Trump administration's decision to end the Direct File program and to rely instead on Free File. They sent a letter to Treasury Secretary and acting IRS Commissioner Scott Bessent requesting information on the IRS plan to expand Free File, promotion of both programs, implementation of prior watchdog recommendations, and oversight of Free File. The IRS canceled Direct File after a 2024 pilot that offered direct online filing to taxpayers in 25 states with simple tax situations. Free File depends on private tax-prep companies and has faced chronic underpromotion and concerns about misleading consumer practices; the IRS plans a targeted communications campaign and highlights VITA as another free option.

Read at Nextgov.com