The Internal Revenue Service (IRS) has confirmed that its free online tax filing platform, Direct File, will not be available during the 2026 filing season. This decision was communicated via an email sent to 25 participating states, stating that “Direct File will not be available in Filing Season 2026,” and mentioning that “no launch date has been set for the future.”
Background on Direct File
Direct File was initiated as a pilot program in the previous year, covering 12 states. It aimed to simplify tax filing, leveraging funds from the Inflation Reduction Act. The program expanded to 25 states this year, significantly increasing the number of users. Despite receiving favorable feedback, the future of Direct File has come under scrutiny, largely due to political pressures.
User Experience and Feedback
- More than doubled user participation from the previous year.
- 86% of users reported increased trust in government through their experience with Direct File.
While the Direct File platform reportedly achieved its objectives concerning user experience, various political figures targeted it for elimination. Critics argue that it competes with commercial tax preparation software and labeled the IRS’s investment of nearly $32 million in the program as excessive.
Legislative Developments
In response to ongoing debates, lawmakers have tasked the IRS with exploring alternatives to Direct File. This comes after decisions to discard prior plans for its termination. Former IRS Commissioner Billy Long confirmed that Direct File is effectively terminated.
Future Access to Tax Returns
Following this discontinuation, taxpayers who previously utilized Direct File will no longer be able to retrieve their tax returns through the platform. Instead, they can access a summary via their IRS accounts or request full copies of their returns through the mail.
Exploring Alternatives
The government continues to seek options for providing free tax filing for a majority of taxpayers. A recent legislatively mandated survey aims to gather taxpayer opinions on Direct File and potential alternatives. This survey includes inquiries about the possibility of an online program operated by the IRS, with associated costs of $10-20 per processed return.
In May, much of Direct File’s code was made publicly available on GitHub. This open-source approach allows state governments to create their own free online tax filing systems, maintaining the initial vision of accessible tax filing for all.
