John,
The pilot of Direct File proved that tax filing doesn’t have to be expensive, stressful, or confusing. In just one season, more than 140,000 taxpayers saved an estimated $5.6 million in junk fees and got back $90 million in refunds, all without lining the pockets of TurboTax or H&R Block.[1]
That success terrified the tax prep giants. Their business model depends on forcing or tricking families to pay for something that should be free. So they went back to their tried-and-true playbook: lobbying, lawsuits, and backroom deals. And under Trump’s IRS Commissioner, they got what they wanted.
Now, the IRS is pulling the plug on Direct File, shoving taxpayers back into the arms of corporations that profit off confusion and red tape. This is corporate capture at its worst. Tax prep companies have poured tens of millions of dollars into lobbying over the years to keep tax filing broken. And now, after one of the most successful IRS pilots in history, they’ve managed to kill off the competition and lock in another taxpayer-funded payday.
But Congress can step in. Lawmakers must act immediately to codify Direct File into law and guarantee every American the right to file federal and state income taxes for free, quickly, and securely.
Tell Congress to stand with taxpayers, not corporate lobbyists. Codify Direct File now.
Every family forced back into the corporate tax prep racket is money siphoned away from groceries, medicine, or rent. A “small” $150 tax filing fee isn’t small for families already struggling. It’s the difference between staying afloat and falling behind.
Those struggles aren’t accidents, they’re the business model these companies are trying to protect. TurboTax hauled in $3.5 billion in profits last year by exploiting the very system Congress refuses to fix.[2]
If Congress fails to act before the 2026 tax filing season, taxpayers will be forced back into a broken system designed to enrich corporate giants at our expense.
It’s time to end the racket. Demand Congress take a stand for taxpayers and make Direct File permanent law.
Let’s keep fighting to save taxpayers billions.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1] 140,000 people did their taxes with the free IRS direct file pilot. But program’s future is unclear
[2] Intuit Reports Strong Fourth Quarter and Full Year Results
