President Donald Trump's administration, in consultation with the Department of Government Efficiency (DOGE), will reportedly shut down the free tax filing system known as Direct File.
The Associated Press reported on Wednesday that the Trump administration would eliminate the popular program developed under Joe Biden's presidency.
Users have praised the system for its ease of use. However, Republicans and paid tax filers complained that the program was a waste of money.
"[T]he fix was in from the beginning," Economic Security Project Vice President Adam Ruben told the AP. "It is an outrage to see everyday taxpayers play no role in this decision."
The program was first used in 2024 after Biden's Inflation Reduction Act provided the IRS with funds to create a "direct file" system.
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"But the IRS has faced intense blowback to Direct File from private tax preparation companies that have made billions from charging people to use their software and have spent millions lobbying Congress," the AP reported. "The average American typically spends about $140 preparing returns each year."
In a statement, Sen. Elizabeth Warren (D-MA) said that Trump and Elon Musk "are going after Direct File because it stops giant tax prep companies from ripping taxpayers off for services that should be free. Americans want a free and easy way to file their taxes — Trump and Musk want to take that away."
