Direct File Tax Tool Shut Down After Brief Run
Update: 2025-12-08
Description
Direct File, IRSs Free Tax-Filing Tool, Shut Down After Brief RunThe Internal Revenue Services free tax-filing tool, Direct File, has been discontinued less than two years after its launch. Despite initial success, the program was shut down due to high costs and low participation. Direct File offered a streamlined, no-cost way for taxpayers to file their federal taxes, but only about 140,000 people used it in its first year, far fewer than the projected 5-25 million. The new Treasury report raised the first-year estimate to $31.8 million, including previously uncounted expenses. The Trump administration plans to focus resources on strengthening the existing Free File program and similar partnerships.
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