The IRS free tax-filing program Direct File saved users $160 each. Now it may come to an end.

IRS Direct File Program Under Threat

The IRS’ Direct File free tax-filing tool, designed to save taxpayers money and time, is facing potential termination under the Trump administration, prompting bipartisan concern. Lawmakers, led by Sen. Elizabeth Warren, urge the Treasury to sustain the program, which has reportedly saved users an average of $160 in tax preparation fees despite opposition from commercial tax prep firms citing its ineffectiveness. While Direct File garnered satisfaction from 96% of its users, critics argue it is a costly endeavor amid broader IRS workforce reductions and budget cuts.