Sen. Elizabeth Warren (D-Mass.) and Rep. Brad Sherman (D-Calif.) introduced legislation on Thursday to revive and permanently lock in the IRS’s free Direct File program, a government-run online option that lets eligible taxpayers send returns directly to the agency without paying a commercial preparer.
Warren Seeks To Make Direct File Permanent
Warren said the Direct File Act would reverse the Trump administration’s decision to end the service and make it “the law of the land,” aiming to prevent future administrations from shutting it down through policy change.
“Donald Trump canceled Direct File after giant tax prep companies spent millions lobbying. Why? Because Direct File let[s] you file your taxes for free. So today, I’m introducing a bill to make Direct File the law of the land. And 160 members of Congress are joining me,” Warren wrote on X.
Bill Sets Rules, State Integration Targets
The bill would require Direct File, block the IRS from entering into agreements that “restrict its ability to provide free online tax preparation or filing services,” require “seamless integration” with participating state systems, mandate annual usage reports, and push the IRS to make Direct File available to at least 50% of taxpayers in participating states by the 2028 tax season.
In another post, Warren argued that TurboTax’s parent company, Intuit, gave more than $1 million to Trump’s inauguration and lobbied against the program.
In December, an Intuit spokesperson told Benzinga that Americans have long had access to free tax preparation and said Intuit has helped more than 140 million people file for free over the past 12 years. The spokesperson argued taxpayers would have used IRS Direct File if they wanted it and criticized the IRS for spending over $100 million on a program that fewer than 1% of eligible filers used.
Pilot Success, Then Trump-Era Cancellation
Direct File launched as a limited pilot in 12 states during the 2024 filing season and expanded for 2025 to 25 states, according to Treasury and IRS materials. A Government Accountability Office review said the IRS planned to make it a permanent option beginning in 2025 after the pilot showed that taxpayers found it easier to use.
The Trump administration later scrapped the program for the 2026 season, AP reported, after internal IRS communications said Direct File “will not be available.” Warren’s office said then-IRS Commissioner Billy Long confirmed Direct File was “gone.”
Photo Courtesy: David Garcia on Shutterstock.com
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