The end of free tax filing, briefly explained

This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here. Welcome to The Logoff: The Trump administration has killed a short-lived IRS program designed to make filing tax returns fast and free. What happened? The fate of IRS Direct File, which was introduced as a pilot program in 2024, has been in question since earlier this year, when it became a target of Elon Musk’s Department of Government Efficiency. Now, we have confirmation that it’s no more, after the IRS notified multiple states this week that the program would be unavailable in 2026. What did Direct File do? Exactly what it says on the label: It allowed taxpayers to file their annual tax returns directly with the agency, cutting out third-party tax prep companies with a profit motive. In the two tax seasons it was available, the program grew in users and functionality, and it had been poised to expand even further. What’s the context? Tax prep is usually not free or fast; on average, according to the IRS, it costs taxpayers about $160 and eight hours of their time per year. And private tax prep is big business, making companies like Intuit TurboTax and H&R Block billions of dollars. Direct File, if it had lived, could have reduced both of those burdens. Why does this matter? In a vacuum, Direct File’s loss may not seem catastrophic. It was a small, new program, used by just shy of 300,000 Americans last tax season. Symbolically, though, it matters: The program was, by all reports, intuitive, popular, and easy to use. Most importantly, it was free. The administration’s decision to axe it removes the possibility that government could make a near-universally dreaded annual chore just a little bit easier and more elegant. And with that, it’s time to log off… I thought that this New York Times story, about how Zohran Mamdani’s winning mayoral campaign doubled as a pro-social engine for young New Yorkers, getting them out of the house and involved in their communities, was pretty uplifting (as always, here’s a gift link). Sticking with the NYC theme, I also recommend this video of a very cute dog in a sweater. (Its subject, Simon, happens to be the “dog mayor” of New York City — a real, if honorary, title!) Thanks for reading, and we’ll see you back here tomorrow!