The IRS ended Direct File, the free, online pilot program that nearly 300,000 taxpayers in 25 states used to file returns for tax year 2024.
“We have better alternatives,” Treasury Secretary Scott Bessent, the acting IRS commissioner, told reporters at the White House on Wednesday, Nov. 5, according to multiple news outlets. “It wasn’t used very much, and we think that the private sector can do a better job.”
Direct File allowed eligible taxpayers to file tax returns directly with the IRS for free. It began in 12 states, then expanded to 25 for tax year 2024, when it also covered more tax situations than the pilot program did.
The IRS also operates Free File, which provides access to free software tools offered by IRS partners and is available to taxpayers with an adjusted gross income of $84,000 or less. Read more.