Sens. Elizabeth Warren, Chris Coons, Ron Wyden, and many more are advocating for a bill that allows taxpayers to file taxes directly with the government for free. The Direct File Act, supported by 160 Democratic lawmakers, aims to reverse the elimination of IRS Direct File by the Trump administration. Sen. Warren and Rep. Brad Sherman are leading this initiative to reinstate free tax filing directly to the government.
The Biden administration trialed the IRS Direct File system in selected states during the 2024 tax season and expanded it to 25 states in 2025. However, the program was halted by IRS head Billy Long last August under President Trump. Sen. Warren highlighted that Intuit, the parent company of TurboTax, donated over $1 million to Trump’s inauguration and strongly lobbied against IRS Direct File.
The proposed Direct File Act not only provides the option to file directly with the IRS but also restricts the IRS from entering agreements that prevent offering free online services. It mandates seamless integration between state systems and ensures 50% taxpayer access by 2028. Unlike the agency’s Free File service, which involves private partners, Direct File would be a direct, free option. Sen. Warren emphasizes the need to reduce costs for families by reinstating Direct File, which was canceled after significant lobbying from tax preparation companies.