By Charles Switzer
2:29am PDT, Apr 18, 2025
Trump Administration Moves to End IRS Direct File Program
The
Donald Trump administration is set to eliminate the IRS's Direct File program that allowed taxpayers to file their returns electronically directly to the agency for free.
According to the
Associated Press, sources familiar with the decision have said this program, which was introduced during former President
Joe Biden's administration, will be discontinued.
The decision has sparked significant debate, particularly due to the program's popularity among users, who praised it for being quick and cost-effective.
Here's everything you need to know about Trump's latest decision.
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Criticism from Republican Lawmakers and Tax Preparation Companies
Despite its success among users, the Direct File program faced strong opposition from Republican lawmakers and commercial tax preparation companies.
Critics argued that the program was a waste of taxpayer money, especially because free filing programs already exist, albeit with less user-friendly interfaces.
These groups contend that the cost of Direct File outweighs its benefits.
David Williams, president of the Taxpayers Protection Alliance, voiced concerns about the program from the start, citing its high costs and the fact that many people who started the filing process did not complete it. "From hidden costs to taxpayer confusion, the program is riddled with issues," he said.
Musk and DOGE's Role in the Decision
The fate of the Direct File program seemed uncertain as the Donald Trump administration began cutting back on federal programs, including technology initiatives.
In February,
Elon Musk announced on his X that he had "deleted" 18F, a government agency involved in technological projects like Direct File. While there was hope that Musk's team from DOGE could take over and improve the system, two sources familiar with the situation confirmed that the IRS staff was instructed to cease work on the program in mid-March for the 2026 tax filing season.
These individuals spoke on the condition of anonymity.
Support for the Program and Backlash from Advocacy Groups
The news of the program's cancellation has drawn strong reactions from various advocacy groups. Adam Ruben, vice president of the Economic Security Project, criticized the decision, calling it an "outrage" and accusing the administration of failing to include taxpayers in the decision-making process.
"Cutting costs and saving money for families were just empty campaign promises," Ruben remarked.
On the other hand, Amanda Renteria, CEO of Code for America, expressed disappointment, calling the move a "betrayal of public trust."
Political Reactions and Future of Free Filing Programs
The elimination of Direct File also sparked political reactions, particularly from those who supported the program's goals.
Senator
Elizabeth Warren, a Democrat who advocated for expanding the program, accused Donald Trump and Elon Musk of targeting Direct File to protect commercial tax preparation companies.
"Trump and Musk want to take that away," Warren said in a statement, criticizing their efforts to undermine a free, easy way for Americans to file their taxes. Meanwhile, tax preparation companies like Intuit, which lobbied against Direct File, applauded the move, arguing that the program was a "drain on critical IRS resources."
