The IRS' Direct File program is now available in 25 states, but it remains under Republican scrutiny.
- For the 2024 tax season, Direct File, the IRS's free tax filing program, has been extended to include taxpayers in 25 states.
- The future of the program is uncertain due to opposition from Republicans who will soon take control of the White House and Congress.
- Over 130 Democrats have called on Trump's Treasury secretary and IRS commissioner nominees to maintain Direct File.
As tax season nears, there is a disagreement among Democratic and Republican lawmakers regarding the future of Direct File, the IRS's free tax filing program.
In 2024, Direct File, which expanded to limited taxpayers in 25 states, processed approximately 140,000 returns during its pilot program, which covered simple returns in 12 states.
The GOP has been critical of the program's free filing service, raising concerns about its future under their control of the White House, Senate, and House of Representatives.
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At his Senate confirmation hearing on Thursday, Scott Bessent, President-elect Donald Trump's nominee for Treasury secretary, was questioned about the future of Direct File.
Bessent stated that Direct File would be operational for the current tax season, without discussing future years.
The next day, after more than 130 Democrats, including Sens. Elizabeth Warren and Chris Coons, expressed support for Direct File.
The Democratic lawmakers wrote in a letter to Bessent and Billy Long, Trump's pick for IRS commissioner, that Direct File is making the process of interacting with the government more efficient, a goal we all can agree on.
We disagree with our colleagues who are advocating for the President to terminate the program.
In December, 28 House Republicans, including Rep. Adrian Smith, R-Neb., penned a letter to Trump, advocating for an immediate end to Direct File through an executive order on his first day in office.
The ongoing expansion of the program poses a threat to taxpayers' freedom from government overreach, and its rollout and structural flaws have already come at a steep price, according to Republican lawmakers.
Last year, the program was launched mid-season in 12 states, but only for simple returns. Despite this, Republicans have consistently emphasized the 140,000 returns filed compared to the total eligible filers.
The IRS reported in May 2024 that the cost for Direct File through the pilot was $24.6 million, and the agency stated that Direct File operational costs were an additional $2.4 million.
In January 2024, 13 state attorneys general wrote to the Treasury Department, describing Direct File as "unnecessary and unconstitutional." Over the past year, Republican lawmakers from both chambers have introduced legislation to halt the IRS' free filing program.
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