Skip to playerSkip to main content
  • 7 minutes ago
Today is Tax Day, but a service that allowed some Americans to file for free won't be available this year. In November of 2025, the Trump administration suspended Direct File, a service through the IRS that prepared your taxes by listing exactly how much you made and owed, and all for free.

Fortune editor Catherina Gioino explains why the program came to an end—and how private companies paid millions to make it happen.

Category

🤖
Tech
Transcript
00:00The Trump administration killed free tax filing this season,
00:03and private companies spent millions to make it happen.
00:05In 2024, the IRS released a tax service that allowed Americans to file for free.
00:10But lobbyists at companies like H&R Block and Intuit weren't just unhappy with the free service.
00:16They called it a government overreach.
00:18Since 2023, Intuit has spent over $11.3 million on federal lobbying,
00:24while H&R Block has spent nearly $10 million,
00:26much of it involving issues tied to IRS modernization, free file,
00:31and proposals for the government to send pre-filled tax returns.
00:35Each year, Americans spend about $240 to prepare and file their tax returns,
00:41according to the IRS Taxpayer Advocate Service.
00:43And since 2003, two private tax giants have spent about $103 million on tax filing-related issues,
00:51including direct file, of which less than 1% of eligible taxpayers actually used.
00:56In December of 2024, House Republicans sent a letter to President-elect Donald Trump
01:00urging him to get rid of direct file on day one.
01:04And free filing for most taxpayers through the IRS came to an end in November of 2025.
01:09The direct file site is effectively dead.
01:11There's no way to file a new return,
01:13and prior users cannot rely on the system they used a year prior.
01:1730 million Americans would have been eligible for the service,
01:19but now only filers making under $89,000 a year are allowed to file for free.
01:25Limiting options for Americans even more.
Comments

Recommended