IRS ending free 'Direct File' tax filing program

A House Ways and Means report found that Direct File was the least often used free tax preparation program.

Published: November 8, 2025 3:11pm

The IRS is ending the Biden-era 'Direct File' program.

The program began as a pilot for tax year 2023 in 12 states for filing returns directly to the IRS free of charge.

The program expanded in 2024 to 25 states.

A House Ways and Means report found that Direct File was used the least often out of free tax preparation programs.

Despite this, some Democrats have said the program should stay for the 2026 filing season.

“I wrote the bill that created Direct File because the existing free options were insufficient and the big tax prep companies had been caught red-handed using deceptive practices to scam taxpayers into overpaying,” said Senate Finance Committee Ranking Member Ron Wyden, D-Ore., in a statement.