Congress Learns of IRS Plans on Free Tax Filing: BGOV Tax

Treasury Outlines Post-Direct File Plans

The Treasury Department’s move to end the IRS-run Direct File tool and shift to strengthening partnerships with tax preparation companies drew expected cheers from Republicans and criticism from Democrats.

In its long-expected report to Congress, required by the GOP tax law enacted in July, Treasury “recommends refocusing IRS efforts on strengthening existing free filing programs,” particularly the existing Free File program where the IRS partners with a group of tax-prep companies.

Direct File was created during the Biden administration, after Democrats’ 2022 tax-and-climate law directed a study on the feasibility of an IRS-fun free tax ...