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IRS Cuts Free Tax Filing Software, Fuels Controversy

11/6/2025

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Summary

Story summary

The Internal Revenue Service (IRS) will discontinue its free tax filing software Direct File for the 2026 tax season, with no plans for its return.
Direct File expanded to 25 states.
In 2025, Direct File was used by more than 296,000 taxpayers.
Treasury Secretary Scott Bessent stated that better alternatives exist.
Democratic lawmakers, including Sen. Ron Wyden (D-Ore.), condemned the decision as benefiting private tax software companies at taxpayers' expense.

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Story summary

The Internal Revenue Service (IRS) will discontinue its free tax filing software Direct File for the 2026 tax season, with no plans for its return.
Direct File expanded to 25 states.
In 2025, Direct File was used by more than 296,000 taxpayers.
Treasury Secretary Scott Bessent stated that better alternatives exist.
Democratic lawmakers, including Sen. Ron Wyden (D-Ore.), condemned the decision as benefiting private tax software companies at taxpayers' expense.