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Democrats to introduce bill aimed at resurrecting IRS Direct File
The Verge
Published about 5 hours ago

Democrats to introduce bill aimed at resurrecting IRS Direct File

The Verge · Feb 26, 2026 · Collected from RSS

Summary

160 Democratic lawmakers from across the country are backing a soon-to-be-introduced bill that would reverse the Trump administration's decision to eliminate IRS Direct File. The Direct File Act, led by Sens. Elizabeth Warren (D-MA), Chris Coons (D-DE), and Ron Wyden (D-OR), would bring back the option to file taxes directly with the government for free. The Biden administration first started testing the IRS Direct File system in select states during the 2024 tax season, and it even expanded the system to 25 states in 2025. But uncertainty surrounding IRS Direct File swirled after President Donald Trump came into office, until IRS head Bill … Read the full story at The Verge.

Full Article

Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.160 Democratic lawmakers from across the country are backing a soon-to-be-introduced bill that would reverse the Trump administration’s decision to eliminate IRS Direct File. The Direct File Act, led by Sens. Elizabeth Warren (D-MA), Chris Coons (D-DE), and Ron Wyden (D-OR), would bring back the option to file taxes directly with the government for free.The Biden administration first started testing the IRS Direct File system in select states during the 2024 tax season, and it even expanded the system to 25 states in 2025. But uncertainty surrounding IRS Direct File swirled after President Donald Trump came into office, until IRS head Billy Long confirmed that it’s “gone” last August. The IRS later notified states that Direct File is no longer available.According to Sen. Warren, TurboTax parent company Intuit donated more than $1 million to Trump’s inauguration and has lobbied heavily against the program. (Companies like TurboTax offer similar tax filing services, but for a fee.)Under the Direct File Act, taxpayers would not only have the option to file their taxes directly to the IRS, but it would also ensure that the IRS doesn’t enter into agreements that “restrict its ability to provide free online tax preparation or filing services.” The IRS would have to enable “seamless integration” between state tax filing systems and Direct File, as well as publish annual reports on Direct File usage. Additionally, the bill would push the IRS to make Direct File available to at least 50 percent of taxpayers in participating states by the 2028 tax season.IRS Direct File isn’t to be confused with the agency’s Free File service, which allows taxpayers to file their taxes using one of its partners, such as TaxSlayer and FreeTaxUSA. TurboTax and H&R Block left the Free File Alliance after the IRS began prohibiting services from hiding free filing options.“Donald Trump canceled Direct File after giant tax prep companies spent millions lobbying to protect their profits,” Sen. Warren says in the press release. “We’re fighting to lower costs for families by bringing Direct File back and making it the law of the land.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma Roth

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