This year, the free IRS tool to file directly with the government online will feature the option for taxpayers to import data the tax agency already has about them from their IRS account into the tool — things like their biographical information, identity protection pin and W-2 form.
Still, the long-term future of Direct File is murky.
The IRS piloted the tool in 12 states last year after decades of relying on private tax prep companies to offer most Americans free options to file their taxes online. That program, called Free File, is vastly underused, although the IRS says Direct File is a supplement to Free File, not a replacement.
In terms of what happens next, Trump has announced that he intends to nominate a former Republican congressman, Billy Long, to lead the tax agency — suggesting that he’d oust current IRS Commissioner Danny Werfel before his term’s expiration date in 2027.
Some Republicans have also been asking Trump to kill the free online service outright, calling it “government overreach.” The Trump transition did not immediately respond to a request for comment on their plans for the tool.
Asked how confident he was in Direct File staying online through the full tax season, Werfel told reporters on Friday that, “as we move forward in the future and we want to evaluate any new and emerging changes, we will evaluate those at that time.” ..
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