IRS Tax Returns to Become More Expensive For Millions of Americans: Report

US News Reporter

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The Trump administration has reportedly ended the Internal Revenue Service's (IRS) Direct File program, a move which would make filing tax returns more expensive for millions of Americans, according to a recent report.

Newsweek has contacted the IRS for confirmation and comment via email outside of regular working hours.

Why It Matters

The IRS Direct File program allows taxpayers to submit simple tax returns directly with the government agency completely free of charge, eliminating the need to use a third-party tax preparation service.

It launched in 12 U.S. states in March 2024 and was expanded to 25 states in 2025. The program was made permanent following the 2024 filing season after some 141,000 people successfully filed with the pilot program in its maiden year.

What To Know

Since the start of the Trump administration, the program had remained in limbo amid broad cost-cutting initiatives led by Elon Musk and the Department of Government Efficiency (DOGE).

In February, Musk wrote on his social media platform X, formerly Twitter, that he had "deleted" 18F, a federal tech office involved in projects including Direct File. The program has also faced consistent opposition from Republican lawmakers and the commercial tax preparation industry.

According to the report by The Associated Press, IRS staff assigned to the program were told in mid-March to stop working on Direct File's development for the 2026 tax filing season.

Form 1040 — Stock image/file photo: IRS tax return forms and U.S. Dollars. GETTY

Supporters of Direct File have said its cancellation is taking away a tool that can help Americans save money. Susan Harley, managing director of Public Citizen's Congress Watch division, said in a statement emailed to Newsweek that the reported move is "another corrupt giveaway to Big Business" by the Trump administration and that it is "almost literally taking money out of our pockets."

What is Direct File?

Direct File is a web-based service that allows taxpayers to submit simple returns directly with the government agency completely free of charge, eliminating the need for a third-party tax preparation service.

The IRS launched its Direct File pilot in 12 U.S. states in March 2024. For this year's tax filing season the program was expanded to these 25 states:

Alaska
Arizona
California
Connecticut
Florida
Idaho
Illinois
Kansas
Maine
Maryland
Massachusetts
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Oregon
Pennsylvania
South Dakota
Tennessee
Texas
Washington
Wisconsin
Wyoming

What People Are Saying

Code for America CEO Amanda Renteria told Newsweek in an emailed statement: "The decision to kill Direct File comes at a critical moment when faith in public institutions is already at historic lows. This isn't just a step backward for tax administration—it's a betrayal of public trust at precisely the time government should be demonstrating its ability to deliver basic services effectively."

Susan Harley, managing director of Public Citizen's Congress Watch division, said in a statement emailed to Newsweek: "Add Direct File to the ever-growing list of popular, money-saving initiatives that have been slashed and burned by President Trump, co-president Musk, and their chainsaw wielding tech bros. Taking away a tool that saves millions of Americans money to boost the tax prep industry's profits is another corrupt giveaway to Big Business."

Derrick Plummer, a spokesman for commercial tax preparation company Intuit, told The Associated Press: "Direct File is and has been a solution in search of a problem, a drain on critical IRS resources and a waste of taxpayer dollars."