According to CNET, the IRS has officially ended its Direct File tax filing software program for the 2026 tax season, confirming rumors that had been circulating since Tax Day 2025. The agency notified 25 participating states that “IRS Direct File will not be available in Filing Season 2026” and “no launch date has been set for the future.” The program had seen explosive growth, with 296,531 tax returns filed through Direct File during the 2025 tax season—more than double the previous year’s usage. An impressive 94% of users rated their experience as “excellent” or “above average,” and New Jersey calculated its 8,500 Direct File users saved about $1.3 million collectively, roughly $153 per filer. Senate Finance Committee Ranking Member Ron Wyden blasted the decision as “stealing from working class taxpayers to pad the profits of giant, rent-seeking tax software companies.”
Sponsored content — provided for informational and promotional purposes.
Why This Matters Beyond the Headlines
Here’s the thing—this isn’t just about killing a government program. Direct File was actually working. It was growing, people loved it, and it saved real money for ordinary taxpayers. The program had expanded from 12 to 25 states this year and added support for more tax credits and situations. Basically, it was proving that the government could provide a simple, effective alternative to commercial tax software. And now it’s gone. So what happens next? Well, taxpayers will be pushed back toward paid options or the limited free alternatives that remain.
Your Free Options for 2026
Now, the IRS isn’t completely abandoning free filing. They’re still offering IRS Free File for people making $84,000 or less, but here’s the catch—that program relies on proprietary software from companies in the Free File Alliance. There’s also Free Fillable Forms for experienced filers who don’t need guidance. But neither option offers the straightforward, government-run experience that Direct File provided. It’s like going from a smooth highway back to bumpy back roads.
The Real Story Behind the Shutdown
Look, let’s be honest—this decision reeks of politics. Senator Wyden didn’t mince words, calling it a “laser-guided weapon aimed at any useful public service.” The timing is suspicious too, coming right after the program proved it could handle hundreds of thousands of returns successfully. Commercial tax software companies have been fighting government-run filing options for years, and let’s face it—they just won. Meanwhile, as tax filing costs keep rising, ordinary taxpayers are the ones who lose. The question is, will this decision stick if political winds change again? Or is this truly the end of the road for free government tax filing?
