IRS Direct File Program Ends; Free Filing Returns to Private Sector Partnership
The IRS has confirmed that its free Direct File program will not return for the 2026 tax filing season, marking an end to the government-run alternative to commercial tax software that served hundreds of thousands of taxpayers in 2024 and 2025.
On November 10, 2025, the Internal Revenue Service officially notified the 25 states partnering on its Direct File initiative that the program would not be available for tax year 2026, with no future launch date announced.
Direct File was launched in 2024 and expanded to 25 states by 2025, serving over 296,500 users who gave the platform high marks in the most recent year. In its first year, taxpayers in 12 states used Direct File to claim over $90 million in refunds, with a 90% satisfaction rate.
What Changed
Direct File was created as part of the Inflation Reduction Act's funding for IRS modernization. However, the agency has been largely understood to mean the end of Direct File — a project that Trump administration officials and Republican lawmakers have repeatedly targeted. The IRS has relied on a public-private partnership called Free File for decades to give most Americans a free way to file their taxes, although only 3% of eligible taxpayers used it in recent years.
What This Means for Expats and New Arrivals
If you have a straightforward US tax return with W-2 wage income and common credits like the Earned Income Tax Credit or Child Tax Credit, you will no longer have access to the simplified government-run filing portal. You'll need to use either the Free File program (available through commercial tax software companies at no cost, if eligible) or hire a professional tax preparer. Many expats and new arrivals appreciated Direct File because it required no third-party software or fees and offered real-time IRS support. Plan ahead for the 2026 filing season (returns due April 15, 2027) by identifying your free or low-cost filing option early.
Sources
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