The IRS' plan for a government-run, free way to file taxes directly with the IRS has changed. The IRS Direct File program, once hailed as a breakthrough for accessible tax filing, is being shut down. It will not be available for the 2026 tax filing season, leaving many users to scramble for alternatives. Here’s a breakdown of what happened, why it’s being ended, and what’s next for taxpayers.
What Was the Direct File Program?
Launched as a Pilot: The IRS began a limited pilot of Direct File in 2024, offering a simple, mobile-friendly, interview-style tax filing system.
How It Worked: It was designed specifically for straightforward tax situations — things like W-2 income, Social Security, unemployment, and a few basic tax credits.
Geographic Reach: Initially available in 12 states during the pilot, expanded over time.
User Satisfaction: According to IRS-internal surveys, about 90% of users rated their experience as “excellent” or “above average.”
Why Is IRS Ending Direct File?
High Cost Per Return
The U.S. Treasury task force estimated that Direct File was costing $138 per return to operate.Relatively Low Adoption
Although usage grew, the total number of filers remained modest. For the 2025 tax season, there were about 296,531 accepted returns submitted via Direct File.Political and Industry Pushback
Some lawmakers accused the program of duplicating what private tax software already provides.
Commercial tax prep firms (like TurboTax and H&R Block) were not thrilled; critics say these companies lobbied against the program because it competed with their business.
Administrative Decision
IRS leadership has signaled a preference for relying on the private sector. Treasury Secretary and Acting IRS Commissioner Scott Bessent stated that the private sector can “do a better job.”Program Wind-Down
The IRS has confirmed via email to state officials:
“IRS Direct File will not be available in Filing Season 2026. No launch date has been set for the future.”
According to IRS communication, many staff working on Direct File have left or been terminated.
The Direct File website now simply reads: “Direct File is closed. More information will be available at a later date.”
What This Means for Taxpayers in 2026
Former Users Need Alternatives
If you used Direct File before, you’ll need to find another way to file in 2026. Your main options include:Hiring a Trusted Tax Professional - This is always our recommendation here at Bryson Law Firm, LLC. In addition to ensuring your taxes are done, and done right, hring a qualified Tax Professional comes with practical and financial benefits that go far beyond basic tax filing
IRS Free File
Commercial Tax Software
Paper Filing
Accessing Old Tax Returns
You can view a summary of your prior Direct File returns via your IRS online account.
For a full return copy, you’ll need to file Form 4506 to request it by mail.
If you were using Direct File or were planning to, now’s the time to evaluate your other options. Need help? Contact Bryson today.
