What Happened?
Millions of Americans who filed their federal taxes for free through a government website may no longer have that option. The Treasury Department suspended the Internal Revenue Service (IRS) Direct File program, which let eligible taxpayers file federal returns at no cost through a secure IRS portal, after two filing seasons. [](#ngr-6ef4e225-97b9-4e19-a23c-9ec35c21f3c0)
A report by Congress' research branch published Sept. 17 examined the program's short history. The report found that while the program attracted far fewer users than projected, the people who did use it rated it highly.
Why Does it Matter to Me?
If you file a simple federal return, with W-2 wages, Social Security income, unemployment pay, or interest under $1,500, you were likely eligible. In 2025, about 32 million taxpayers qualified, but only about 309,000 actually used it, roughly one in 100 eligible filers.
With the program suspended, those taxpayers must now use private tax software, a paid preparer, or an existing IRS Free File arrangement with commercial companies. The CRS report notes that electronic filing can speed up refunds and lower processing costs for the IRS, so the suspension affects more than just convenience.
Both Sides, Now
Supporters of restoring the program point to its user satisfaction numbers. About 94 percent of roughly 8,900 survey respondents rated the 2025 experience excellent or above average. Legislation to restore it has been introduced in both chambers of Congress, identified as S. 3948 and H.R. 7806.
Critics point to cost and reach. The program cost the government $32 million in 2024 and $41 million in 2025, not counting additional IRS overhead. Usage fell well short of the IRS's own forecast of 450,000 to 1.25 million returns in 2025.
The IRS cited limited public awareness and taxpayer preference for paid preparers or familiar filing methods as reasons for the shortfall. Some also argue the existing Free File partnership with private companies already fills this role.
What Happens Next?
The two bills introduced to restore the program must clear committee review before either chamber can vote on them. No hearing or vote has been scheduled on either bill.
The CRS report flags one unresolved question: whether improvements to the existing Free File program, including better promotion and stronger oversight of private providers, could serve as an alternative to a government-run portal. Until Congress acts, taxpayers who relied on the IRS website to file for free will need to look elsewhere.
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This article was generated by AI pulling from data. Each article is edited by an editor for accuracy and clarity.
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