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IRS Shuts Down Free Direct File System Amid Controversy

11/8/2025

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Summary

Story summary

The Internal Revenue Service has closed its Direct File system for free online tax filing, introduced under the Biden administration.
Treasury Secretary Scott Bessent stated the halt arose from low usage and ongoing opposition from tax-preparation firms and Republican lawmakers who had pushed for termination.
He emphasized a preference for private sector solutions over government offerings.
The IRS will focus on its Free File partnership with commercial providers.

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Story summary

The Internal Revenue Service has closed its Direct File system for free online tax filing, introduced under the Biden administration.
Treasury Secretary Scott Bessent stated the halt arose from low usage and ongoing opposition from tax-preparation firms and Republican lawmakers who had pushed for termination.
He emphasized a preference for private sector solutions over government offerings.
The IRS will focus on its Free File partnership with commercial providers.