IRS Confirms Direct File Unavailability for States in 2026
The IRS has confirmed that the Direct File platform will not be available during the 2026 filing season. This announcement, communicated to 25 partner states on Monday, marks a significant shift for a project that aimed to simplify tax filing for users.
Details About Direct File Unavailability
Direct File, which operated in its pilot phase for two years, was intended to help taxpayers submit their federal and state tax returns more efficiently. Launched last year, the project began in 12 states and expanded to 25 in the current filing season.
- Launch Year: 2025
- States Involved: 25
- User Growth: More than doubled the total number of users this year
- User Trust: 86% of users reported increased trust in government
Reasons for Project Cancellation
Despite the positive feedback from users, the program has faced significant opposition from lawmakers. The Trump administration targeted Direct File, suggesting that it competes with tax-preparation software companies. As a result, the IRS announced that access to the platform will cease.
Taxpayers who previously used Direct File will have alternative ways to access their returns. They can view a summary online or request a full copy by mail. The agency expressed gratitude to the states for their collaboration in the project.
Future Tax Filing Solutions
With the discontinuation of Direct File, the IRS is required to explore new alternatives. Recent legislation has allocated funds for research into systems that would allow up to 70% of taxpayers to file for free.
- Former IRS Commissioner: Billy Long stated Direct File is “gone.”
- Cost of Direct File: Approximately $32 million to launch
- Legislative Changes: New laws prevent elimination of Direct File until alternatives are developed
In September, the IRS initiated a survey to gather public input on the effectiveness of Direct File and potential replacements. The feedback will help shape the future of tax filing in the U.S.
Open-Source Software Initiative
In a bid to provide continuity, much of Direct File’s code has been made available on GitHub. This allows state governments to build their own free online tax filing systems based on the original project.
The discontinuation of Direct File represents a critical moment in the evolution of taxpayer services. As the IRS moves forward, it remains to be seen how these developments will affect taxpayers nationwide.
