IRS halts free online option for filing US taxes directly

The Internal Revenue Service is shutting down its free online system for filing tax returns, a programme that President Joe Biden’s administration introduced last year and that users gave high marks.

- TARA SIEGEL BERNARD

The fate of the programme, Direct File, had become increasingly uncertain, given Republican criticism. But a recent report from the Treasury Department made clear that the agency would suspend the offering and suggested that the IRS focus its efforts on its other free programmes, particularly Free File, a partnership with a collection of commercial providers.

Treasury Secretary Scott Bessent, who is also the acting IRS commissioner, confirmed the plan outside the White House on Wednesday, saying the programme was halted because it wasn’t widely used. “And we think the private sector can do a better job,” he said.