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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Despite Smith’s remarks, the Direct File program has received broad support from taxpayers and voters across the political spectrum. According to a Data for Progress poll conducted in April, 82% of likely voters said they support expanding Direct File to all Americans. That includes 80% of Republicans, 85% of Independents, and 81% of Democrats.
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
When news broke out in April that the Trump administration plans to discontinue Direct File for the 2026 tax season, Sen. Ron Wyden (D-OR) called Direct File a “massive success” that removed unnecessary middlemen. He accused President Donald Trump and Treasury Secretary Scott Bessent of “robbing regular American families to pay back lobbyists that spend millions to make tax filing more expensive and more difficult.”
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.”
Meanwhile, the program critics like David Williams of the Taxpayers Protection Alliance argued that the IRS overstepped by building Direct File without explicit approval. “The IRS created Direct File without congressional approval,” Williams wrote in April. “In fact, the $15M from the Inflation Reduction Act was supposed to be for a study. Instead, the IRS built the software.”
Still, many policy advocates and voters say the program filled a real need and made tax season less stressful.
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