Rep. Jason Smith (R-MO) is celebrating the House-passed bill that would shut down the Internal Revenue Service Direct File program, a free federal tool that allows Americans to file taxes online without paying private companies.
“Nobody asked for the IRS to be Americans' tax preparer, filer, and auditor,” Smith posted on X on June 24. “The House-passed One, Big, Beautiful Bill puts an end to the IRS Direct File Program.”
The Program Had Strong Support From Voters And Users
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The IRS launched Direct File using Inflation Reduction Act funds. It started as a small pilot in 12 states during the 2024 tax season and expanded to 25 states in 2025, serving 32 million eligible users. The tool was described as secure, simple, and always free.
Kitty Richards, senior fellow at the Groundwork Collaborative, a progressive economic policy group, said Direct File was “a crystal clear example of government efficiency at work. Taxpayers shouldn't have to pay exorbitant fees to predatory for-profit companies just to file their taxes.”
According to Groundwork, IRS data and user surveys also backed the program's popularity. In 2024, 90% of surveyed users rated their experience as excellent or above average, and most reported filing in under an hour. By their estimates, Direct File saved taxpayers $5.6 million in fees during its first full rollout, and every dollar invested returned $160 in savings.
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Critics Say Ending Program Benefits Big Companies
Staff working on the program were reportedly told weeks earlier that they would no longer be needed.
The Department of Government Efficiency, once led by Tesla CEO (NASDAQ:TSLA) Elon Musk, reportedly played a role in weakening the IRS program. Musk posted in February that the Direct File development team had been “deleted.”
Still, many policy advocates and voters say the program filled a real need and made tax season less stressful.
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