Tax Coda

Tax Coda

Treasury moves to shut down IRS Direct File

RIP IRS Direct File

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Tax Coda
Nov 07, 2025
∙ Paid

Treasury told Congress it wants the IRS to pull the plug on Direct File, the government’s homegrown tax software, and focus instead on fixing Free File and volunteer prep programs.

The report, dated Oct. 2 but released Nov. 5, 2025, says Direct File reached only a sliver of taxpayers, cost hundreds of dollars per return, and distracted the IRS from bigge…

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