But the two people familiar with the decision to end Direct File said its future became clear when the IRS staff assigned to the program were told in mid-March to stop working on its development for the 2026 tax filing season.
The two people were not authorized to publicly discuss the plans and spoke to The Associated Press on condition of anonymity.
I hope they get turned in. “No one is above the law”…amirite…or is this different?
David Williams, president of the Taxpayers Protection Alliance, which describes itself as a nonpartisan organization that disseminates research and analysis on the government’s effects on the economy, said Direct File was “problematic” from day 1, citing the program’s costs and noting that many people who started the process never finished. According to the IRS 423,450 taxpayers logged into Direct File and 140,803 submitted accepted returns in 2024.
The elephant in the room is the fact that SOMEONE WILL sue Trump over this as well.
BTW…filling was always free…we were just charged a fee by the Accountant.
I think by the time 4 y rolls around the corner Trump will get away with INCOME TAXES all together and have money coming IN from a booming Economy pay for those.
I mean…if THEN he dosn’t get his bust made of gold…or his face on a 250.00 dollars bill…I don’t know when.
I might kick the bucket before that to see it but someone here will say:
’ I’ll be darn…that Spade DID say this is coming…’
Ditto. Even the printed instruction booklet and the form 1040 are free. All it costs is the toner to print a couple other necessary forms, an envelope and as you say, the stamp. The OP must be doing something wrong.
Has this “nonpartisan” group done a cost analysis as to what it would cost to process those 141K returns manually v via DirectFile?
Because that’s how the cost analysis would have to be done.
As for those who started but didn’t complete the process, costs added for those people are minimal, especially since we don’t have a metric as to what “started” means. How many of those are people who started their returns only to realize at some point during the process they didn’t qualify for DirectFile?
It’s an exact mistake to make. My daughter was going to use it one year when she thought she qualified, only to find out she couldn’t claim the credit she was getting at the time for contributing to a 401K as a “low earner”.
Until she learned that, she had always intended to complete the process.
Your referenced article says the Biden administration spent over ten million dollars on the program and most people who tried to use it gave up before filing.
So I guess the question is how much the government should continue to pay for a program they couldnt perfect.
Especially since commercial tax programs already provide free electronic filing for people with simple returns. If your returns are not simple, you want an advanced tax program anyway.
And for a real simple filing, a paper form and pen and a stamp work fine.
So I guess it’s a cost/reward issue.