Trump Makes Filing Taxes More Costly and Difficult for Taxpayers, Benefiting the Multi-Billion Dollar Tax Preparation Industry

Earlier this week, the Trump administration informed states that it has officially shut down the free for taxpayers direct-file service. The service will not be available in 2026. This program allowed qualified taxpayers in certain states to file their taxes with the IRS at no cost. First implemented under the Biden administration, the service was praised by taxpayers for making tax filing simpler and more affordable. Since its launch, the multibillion-dollar tax preparation industry and its Republican allies have spent millions lobbying aggressively to eliminate this efficient, cost-effective service.

“During a government shutdown, the Trump administration found time to dismantle a public service that millions of working people depend on—ensuring billions of dollars continue flowing into the pockets of tax preparation companies at increased costs to taxpayers,” said David Kass, ATF Executive Director. “This announcement baselessly eliminates a service that saves everyday Americans time and significant money. American taxpayers shouldn’t pay hundreds to file taxes when they could file directly with the government for free. This administration will stop at nothing to squeeze every last dollar out of normal people’s pockets to enrich their powerful corporate donors.”