Code for America CEO Amanda Renteria on News of IRS Direct File Cancellation

“News of a plan to kill Direct File comes at a critical moment when faith in public institutions is already at historic lows. Planning to eliminate this successful free tax filing program isn’t just a step backward for tax administration—it’s a betrayal of public trust precisely when government should be demonstrating its ability to deliver basic services effectively. 

“While this reporting is indeed concerning, Code for America will remain grounded in what we know for sure right now: that taxpayers like Direct File, that it helps people gain access to transformative tax benefits, and that as long as the program exists, we will continue to partner with states to ensure those tax benefits reach as many people as possible.

“When the Internal Revenue Service announced the launch of Direct File in May 2023, we called it the start of a sea change in American tax administration. Filing a tax return is one of the most fundamental interactions many Americans have with the federal government, and it allows millions of families to access critical tax benefits that help them put food on the table and keep a roof over their heads. Modernizing our tax system is a common-sense solution with a long bipartisan history, dating back to President Ronald Reagan’s 1985 proposal for a ‘return-free system.’ Years later, in 1998, Congress passed the IRS Restructuring and Reform Act with near-unanimous support to develop that system. In launching Direct File,  the IRS took the next step in acknowledging that the front door of the tax system is the government’s responsibility, moving a decades-old vision toward reality.

“Since its start, Direct File has been a huge benefit to taxpayers—hundreds of thousands of whom have used it and loved it, according to survey data. The tool saved them tens of millions of dollars in filing fees, saved countless hours of tax preparation, and increased their trust in government. Additionally, the tool automatically fills in information the government already knows, like taxpayers’ W-2 forms or previous year’s tax information. This reduces time and errors for people and increases accuracy and efficiency for governments.

“For these reasons—and many more—Direct File represents a massive victory not only for technology but also for public service overall.

“At Code for America, we know better than anyone that launching an effective new government software product is incredibly hard. Despite the immense challenge of making tax e-filing free and easy, Direct File has worked remarkably well thanks to the hard work and talent of IRS staff. The vast majority of survey respondents said the product was easy to use and gave high marks for their experience. We anticipated that the future of the program—one complete with expansion to more tax situations and more states, featuring more automation, and available to more taxpayers over time—would build upon this strong foundation. A decision to walk away from that progress deviates from what taxpayers want and deserve.

“While today’s news, if true, is disappointing, we remain determined. In the same way that we’ve supported state tax filing integrated with Direct File via FileYourStateTaxes, made it possible for millions of Americans to claim tax benefits that lifted them out of poverty during the pandemic, and helped people claim nearly $500 million in refunds through GetYourRefund, Code for America will continue supporting taxpayers via FileYourStateTaxes, which is still open for people to finish their state returns. 

“At a moment when Americans’ trust in government institutions has eroded to dangerous lows, it’s undeniable that eliminating a program that actually worked—one that demonstrably built confidence in government’s ability to serve its people—would be a massive misstep. Beyond hurting American taxpayers today—it would undermine the very foundation of public trust we desperately need to build.”