News
IRS suspends Direct File Program
Nov 10, 2025 —The U.S. Treasury has announced that the IRS will suspend its Direct File tool. It will shift focus to improving the Free File program, which is a longstanding partnership with private tax software providers. The decision was outlined in a report to Congress dated 10/2 and released 11/2/25. It cites low participation, high operational costs, and burdens on the federal government.
User feedback was positive for Direct File, but fewer filers used it than were expected; 296.531 in 2024. The IRS attributed this low usage partly to misinformation. The 25 states participating in the pilot program were informed that Direct File will not return for the 2026 filing season.
Check the AICPA website or contact Melanie Lauridsen at AICPA (melanle.lauridsen@aicpa-cima.com) for more details.
