WASHINGTON (AP) — The Trump administration plans to cancel the IRS's direct document program, an electronic system that directly submits tax returns to the agency for free, according to two people familiar with the decision.
A program developed during Joe Biden's presidency made it easy, fast and economical for users to apply for taxes. But Republican lawmakers and business tax preparation companies complain that this is a waste of taxpayers’ money because the free application program already exists, although it is difficult to use.
The plan has been limited since the Trump administration began, as Elon Musk and the Department of Efficiency have cut their own ways through the federal government. Musk posted on his social media site X in February that he “deleted” 18F, a government agency engaged in technical projects such as direct documents.
People hope Musk can take over and improve files with his savvy team of computer programmers. But two people familiar with the decision to end the direct documents said that the future became clear when IRS employees who told the program in mid-March were told to stop developing its development during the 2026 tax filing season.
The two men have no right to discuss the plan publicly and spoke with the Associated Press on anonymous condition.
“The restoration started from the beginning,” said Adam Ruben, vice president of the Liberal Economic Security Program.
“It’s anger to see everyday taxpayers have no effect in this decision,” he said. “Cutting costs and saving money for families is just empty campaign promises.”
But David Williams, president of the Taxpayer Protection Alliance, described himself as a nonpartisan organization that disseminated the research and analysis of the government’s economic impact, said the direct document was “problematic” from day 1, pointing out the cost of the program and noting that many people who started the process never completed it. According to the Internal Revenue Service (IRS) 423,450 taxpayers, it was included in the direct document and 140,803 taxpayers were filed in 2024.
“From hidden costs to taxpayer confusion, the plan is full of problems,” Williams said.
The IRS's mission is to study how to create a “direct file” system after the direct file is launched as a pilot program, which is part of the funding signed by Biden as a law in 2022. The Democratic government spent tens of millions of dollars to develop the plan.
Last May, the agency announced that the plan would be implemented permanently.
But the IRS faces a huge backlash, guiding private tax preparation companies that charge people billions of people to use their software and spend millions of lobbying conventions. The average American usually spends about $140 a year in preparation for returns.
The IRS accepted 140,803 returns submitted by taxpayers using direct documents in the 12 states available in the previous tax season. It has been expanded to include half of the country this year. It is not clear how many taxpayers have used direct documents this year.
Amanda Renteria, CEO of the U.S. Code, worked with the IRS to develop a comprehensive plan for state tax filings for direct archives, said the decision was “a sale of public trust in a public trust” when the government should demonstrate its ability to effectively provide essential services.
D-Mass. Senator Elizabeth Warren, a supporter of building direct archives, said in an emailed statement that Trump and Musk “are pursuing direct archives because it blocks giant tax preparation companies, allowing taxpayers to snatch services from taxpayers what should be free.
