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IRS Axes Direct File: Tax Prep Giants Reclaim Throne, Enterprise Integrations at Risk

Summary by WebProNews
The Internal Revenue Service’s decision to discontinue its Direct File program marks a significant shift in the landscape of tax preparation in the United States. Launched as a pilot in 2024 and expanded in 2025, Direct File allowed millions of taxpayers to file their returns directly with the IRS for free, bypassing commercial software providers. Now, with the program’s termination announced for the 2026 tax season, the agency is pivoting back …
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On November 3, the U.S. Internal Revenue Service (IRS) sent an email to state auditors who had previously participated in the IRS's Direct File process, stating that "the IRS Direct File process will no longer be used for the 2026 tax season, and a future activation date has not yet been determined."

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Money broke the news in on Monday, November 10, 2025.
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