Trump administration plans to end the IRS Direct File program for free tax filing, sources say

The Trump administration is set to end the IRS’ Direct File program, an electronic system allowing free tax return filing directly to the agency, sources familiar with the decision revealed. The program, established during Joe Biden’s term, was praised for simplifying, speeding up, and reducing costs in tax filing. However, critics argued it was unnecessary as other free filing options exist but are complex. The fate of Direct File became evident when IRS staff were instructed to halt its development for the 2026 tax season. Although there were hopes of Elon Musk and his team improving the program, it was ultimately discontinued. The decision sparked criticism from various quarters, with some calling it a betrayal of taxpayers. Despite its initial success, Direct File faced opposition from commercial tax preparation companies, leading to its demise.