IRS Ends Direct File; Jan. 26 Start for 2026 Filing Season
The IRS ended its Direct File pilot, leaving taxpayers without that free option for 2025 returns. The 2026 filing season opens Jan. 26 amid staffing losses and major tax-law changes affecting returns and refunds.
Overview
IRS discontinued the Direct File program in late 2025 after political opposition and low usage, removing a direct federal e-filing option for eligible taxpayers.
The 2026 tax filing season begins Jan. 26, with the IRS expecting roughly 164 million returns and an April 15 filing deadline.
New tax law provisions from the 2025 Republican package (One Big Beautiful Bill) include retroactive changes for 2025, likely increasing refunds and complicating filing.
IRS workforce reductions raise concerns about processing delays; watchdogs warned of risks after significant staff cuts and buyouts.
Taxpayers can still file for free using IRS Free File, free fillable forms, select commercial free services, and volunteer programs like VITA and TCE.
Analysis
Center-leaning sources treat the story neutrally: they report factual background (pilot rollout, participation numbers, Treasury findings), include opposing viewpoints (Republican lawmakers, Treasury official quote) and practical alternatives (Free File, Cash App Taxes, VITA/TCE). Language is informational rather than evaluative, and coverage emphasizes consumer options over partisan advocacy.
Sources (5)
FAQ
The IRS ended Direct File because it had very low participation, covered less than 0.5% of all returns, and was relatively expensive and resource‑intensive compared with existing free filing options such as IRS Free File, leading Treasury to recommend refocusing on strengthening those existing programs instead.
Taxpayers can still file at no cost through IRS Free File software if their income is below the program’s threshold, use Free File Fillable Forms, or rely on volunteer programs such as the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), as well as certain free offerings from private tax software providers.
Because the IRS is entering the 2026 season after significant workforce reductions and buyouts, watchdogs have warned that reduced staffing could slow return processing and heighten the risk of backlogs, which may in turn delay some refunds even as new 2025 tax law changes are expected to increase average refund amounts.
The 2025 Republican tax package known as the One Big Beautiful Bill includes retroactive provisions for 2025 that alter rates, credits, and deductions in ways that are expected to boost many taxpayers’ refunds but also make 2025 returns more complex to prepare and review.
For the 2026 filing season, the IRS plans to begin accepting and processing individual income tax returns on January 26, and the regular filing deadline to submit 2025 returns or request an extension is April 15.
History
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