As Tax Filing Season Ramps Up, Warren, King, Lawmakers Press Trump Administration Over Decision to End Direct File
“Taxpayers deserve a free and functional filing option that keeps their information secure.”
Text of Letter (PDF)
Washington, DC- U.S. Senators Elizabeth Warren (D-Mass.), a member of the Senate Finance Committee, and Angus King (I-Maine) led their colleagues in pressing Treasury Secretary Scott Bessent and Internal Revenue Service (IRS) Chief of Taxpayer Services Ken Corbin on the Treasury Department’s decision to end Direct File, the IRS’s free online tax filing program, and instead promote Free File, a long-troubled partnership between private tax preparation companies and the IRS.
Warren and King were joined by Senator Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee, and Representatives Mark Pocan (D-Wis.), Don Beyer (D-Va.), Steny Hoyer (D-Md.), Judy Chu (D-Calif.), and Brad Sherman (D-Calif.).
“We are concerned that Free File will not be sufficient to address taxpayers’ needs for free tax filing options considering its history of ineffectiveness,”wrote the lawmakers.
Last November, the Treasury Department announced that Direct File would not be available in 2026, despite 94% of users describing their experience as “excellent” or “above average.” Instead, the Trump Administration has chosen to promote Free File, which outsources online tax preparation to third parties.
Free File has a history of ineffectiveness, revealed in a series of independent watchdog reports. Free File’s usage has declined since hitting its peak usage in 2004. Free File partners have deliberately misled taxpayers into paying for assistance when they are eligible to file for free. Additionally, a 2023 Congressional report revealed members of the Free File partnership were “shockingly careless with their treatment of taxpayer data” and leaked sensitive taxpayer data to private tech companies, putting taxpayers’ most sensitive information at risk.
In comparison, Direct File was truly free for all users, with no additional fees, and sensitive taxpayer information was held by the IRS and carefully protected, not leaked to private companies.
“Taxpayers with low and moderate incomes deserve a free and functional filing option that keeps their information secure,”wrote the lawmakers.
“While the Administration has claimed that Direct File was unnecessary due to the availability of Free File, it is clear that Free File is an inadequate substitute for Direct File,”continued the lawmakers.
The lawmakers requested that Secretary Bessent and Mr. Corbin provide a detailed response to their series of questions by February 26, including their plans to address Free File’s inefficiencies.
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