The IRS’s Direct File program, a free alternative to TurboTax, won’t launch for the 2026 tax season, marking a reversal for the Biden-era initiative.
The IRS has quietly shelved Direct File, its free tax-filing tool, for the 2026 tax season. According to a letter sent to participating states, the agency has set no launch date for the future of the program. Direct File, which debuted as a pilot during the 2024 tax season and expanded to 25 states by 2025, was designed to let eligible taxpayers file their returns online without paying private services like TurboTax or H&R Block. The move represents a sharp reversal from the Biden administration’s push to make tax filing simpler and more accessible.
The Trump administration appears opposed to Direct File in its current form. In July 2025, then-serving IRS Commissioner Billy Long declared the program “gone,” stating at a tax summit that “Big beautiful Billy wiped that out.” The administration’s “Big Beautiful Bill” includes funding to research the costs of replacing or developing direct e-file systems, suggesting any future iteration would look fundamentally different.
Meanwhile, the position leading the Direct File project inside the IRS remains vacant, and the tool has already been removed from the IRS website. Sophisticated filers, like with their own Google Sheets accounting spreadsheets, still have options.
Response in the community: The decision has sparked frustration among observers who see it as a win for the tax preparation industry. Commenters have pointed to the influence of lobbying by companies like TurboTax, with some suggesting the industry’s financial sway over policymakers played a role in the program’s demise.
The community has expressed skepticism about the timing and reasoning, with many noting that Direct File’s elimination protects the profits of private tax software companies at the expense of ordinary taxpayers.
Free Alternatives: Support for free tax filing alternatives remains strong among the public. Observers have highlighted other free options like FreeTaxUSA as evidence that accessible tax preparation is possible without relying on major corporations.
The broader conversation reflects a tension between government efficiency and private industry interests, with many questioning whether taxpayers should bear the cost of filing taxes when the IRS already has their information.
Free profit and loss spreadsheet templates can also help small businesses during tax season. With or without the help of a tax professional, there are still ways to minimize fees while filing taxes.
The fate of Direct File now hinges on the results of the administration’s cost research. Whether a future version emerges remains uncertain, but for now, millions of Americans may return to paying for tax preparation services or navigating complex forms on their own. Those looking for free options can still visit Free File Alliance, which is referenced on the IRS website.