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The e-filing system that allows taxpayers to file federal taxes for free might be in jeopardy after Trump administration officials hinted at cancelling the program after this year.
The Internal Revenue Service’s Direct File program allows individuals to file federal taxes without costs if they meet certain requirements. It is currently available in 25 participating states and remains on the IRS website.
The Associated Press and FedScoop reported the administration’s plans to ax the initiative, citing anonymous sources. According to the AP, the Treasury Department has not made a final decision about the program’s future.
Republican lawmakers have criticized the free program, claiming that other free services are available for taxpayers to file and developing the software was a waste of funds.
Additionally, there are concerns that the program could cost more if it’s made available in more states.
One Democratic lawmaker took issue with the Trump administration’s potential action in a written statement.
“No one should have to pay huge fees just to file their taxes,” wrote Senate Finance Committee Ranking Member Ron Wyden of Oregon.
“Direct File was a massive success, saving taxpayers millions in fees, saving them time and cutting out an unnecessary middleman that took money out of Americans’ pockets for no good reason.”
The Independent emailed the IRS for comment.
The program was created under President Joe Biden, and users generally credited the initiative with saving them money and providing an easy tax filing experience.
David Williams, the president of the Taxpayers Protection Alliance, alleged the program was created without congressional approval. The IRS was given $15 million from the Inflation Reduction Act he claimed was initially meant for a study.
“Instead, the IRS built the software,” he wrote on X.
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