Core Insights - The IRS Direct File program, which provided free tax software to taxpayers in 25 states, will not be available for the upcoming filing season due to its low utilization and cost concerns [1][2][7] - The program cost approximately $41 million to operate during the 2024 tax year, with only 0.2% of tax returns filed using it [2] - Despite low usage, a survey indicated that nearly three-fourths of tax filers were interested in using Direct File, and 94% of users rated their experience positively [3] Program Suspension - The Direct File program has been suspended as part of a broader initiative to explore more effective alternatives, with Treasury Secretary Scott Bessent stating that the private sector could provide better solutions [1][7] - An IRS task force was created to assess the costs associated with Direct File and potential replacements, following directives from the "One Big, Beautiful Bill" [1] Taxpayer Options - For the 2026 filing season, other free federal tax preparation programs will still be available, including the IRS Free File program for taxpayers with an adjusted gross income of $84,000 or less [5][8] - Additional options include the Volunteer Income Tax Assistance program for individuals earning $67,000 or less, and Tax Counseling for the Elderly for those aged 60 and above [8]