Trump Administration Plans to Eliminate IRS Direct File Program
The Trump administration is set to end the IRS Direct File program, a free electronic tax filing system developed under Biden, amidst controversy.
Overview
The Trump administration intends to eliminate the IRS Direct File program, which allows taxpayers to file their returns for free. Critics argue that the program simplifies tax filing, while opponents, including tax prep companies, claim it's ineffective and costly. The program had expanded in 2025 to cover 25 states, but its low submission success rate has raised concerns. The decision has garnered mixed reactions from various stakeholders, with some viewing it as a loss for taxpayers and others calling it a necessary cut.
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Analysis
- The Trump administration is planning to eliminate the IRS Direct File program, which was considered beneficial for taxpayers seeking a straightforward and cost-free way to file their taxes directly with the IRS.
- Supporters of the program argue it simplifies the tax filing process and reduces costs for families, while critics, including some Republican lawmakers and tax preparation companies, claim it is a waste of resources and unnecessary since there are existing free filing options, albeit complicated.
- The IRS is experiencing backlash from commercial tax preparation companies that profit from tax filing services, which have spent considerable resources lobbying against the Direct File program.
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Chicago Sun-Times·3M·FAQ
The IRS Direct File program is a free electronic tax filing system that allows taxpayers to file their federal tax returns directly with the IRS. It simplifies the filing process, saving time and money for users. The program supports certain types of income and credits and is available in 25 states for the 2025 tax year[1][3].
The Trump administration plans to eliminate the program due to concerns about its cost and effectiveness, as well as complaints from Republican lawmakers and commercial tax preparation companies who see it as a waste of taxpayer money[2].
The IRS remains committed to providing free filing options, including its partnership with Free File Inc. and programs like VITA and TCE. While Direct File's future is uncertain, the IRS will continue to support these alternatives[4].
The decision has garnered mixed reactions, with some stakeholders viewing it as a loss for taxpayers who benefit from the free filing option, while others see it as a necessary cost-cutting measure[2].
History
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