Trump administration axes a free online tax filing system, leaving hundreds of thousands of taxpayers facing higher fees

Core Points - The IRS Direct File program, which was launched in 2024 and used by nearly 300,000 Americans in 2025, is being terminated by the Trump administration despite its initial popularity and support from 75% of taxpayers [1][4] - Treasury Secretary Scott Bessent stated that the decision to end the program was based on the belief that there are "better alternatives" available [2] - Critics argue that the termination of IRS Direct File will negatively impact average taxpayers while benefiting tax software companies [3] Program Details - The IRS Direct File program was initially launched in 12 states in 2024 and expanded to 25 states for the 2025 tax season, making it available to 32.2 million taxpayers [4] - In 2025, 296,531 taxpayers utilized the program, representing a 111% increase from 2024 [4] - A poll by the Center for Taxpayer Rights indicated that 94% of users rated their experience with the program as "excellent" or "above average" [5] Opposition and Lobbying - Major private-sector companies like Intuit and H&R Block lobbied against the IRS Direct File program, spending millions to ensure its termination [6] - H&R Block openly stated that the free federal tax-filing program would adversely affect their revenue and profitability [6] - The combination of leadership changes and significant lobbying efforts ultimately led to the program's demise [7] Future Implications - There will not be an equally simple and free method for taxpayers to file taxes with the IRS in the upcoming year following the program's cancellation [8]