Direct File May Soon Be Gone. Its Lessons Won’t Be Forgotten.  

COMMENTARY

When the IRS announced its plan to develop Direct File — the federal government’s first-ever free online tax filing tool — in May 2023, it was the beginning of a sea change in American tax administration. Direct File set out to be the rare government program that delivered exactly what it promised: an effective, efficient and accessible service that made the notoriously complicated process of tax filing simple. 

By early 2025, what started as a small pilot the year before had expanded to cover 32 million households in 25 states. Hundreds of thousands of Americans were able to electronically file their federal returns directly with the government — quickly, easily and for free. Taxpayers who used Direct File loved their experience — 86% of users surveyed said the program restored their trust in the IRS. 

So of course, news that the federal government now plans to shut the program down has left its fans dumbfounded. As of this writing, Direct File is still available for eligible tax filers on the IRS website, but it’s possible for this to change at any moment.

If the program is canceled, it would be a devastating setback for those of us who believe in modern, human-centered government — and, more importantly, for the everyday Americans who rely on the program to receive the tax benefits they are due. 

Beyond making tax filing easier, Direct File helped working families access critical tax benefits, like the Earned Income Tax Credit and the Child Tax Credit, powerful tools in reducing poverty.

The IRS Direct File program exemplifies what’s possible with civic technology — using tech to solve big problems that affect us all. It transformed a complex tax filing system into one that’s simple and accessible. In its pilot year alone, Direct File served taxpayers in 12 states, allowing them to file in under an hour and saving an estimated collective $5.6 million in preparation fees. 

Surveys showed that 90% of respondents ranked their experience with Direct File as “Excellent” or “Above Average.” Most importantly, Americans who used the tool were able to claim $90 million in refunds. And when it expanded to 25 states, millions more in benefits went directly into the pockets of hard-working Americans. Simply put, people loved it, it was easy and it was free.

The benefits weren’t limited to the federal level, either. For the past two tax seasons, the FileYourStateTaxes e-filing tool has enabled taxpayers in certain states to file a state return for free when using Direct File. The tool was developed by civic technology nonprofit Code for America, where I serve as CEO. And it also received rave reviews: 98% of respondents in this year’s follow-up survey said they were “satisfied” or “very satisfied” with FileYourStateTaxes, with 94% of those surveyed reporting they preferred the integrated Direct File-FYST filing method to their previous way of completing a return.

It’s rare to see any consumer product receive such overwhelmingly positive feedback — let alone one run on government software. 

When the current administration took office, it had the opportunity to champion Direct File’s continued success as a model for how to make government both more efficient and more effective. Instead, it has reportedly chosen to end this enormously popular program at a time when public trust in government is at a record low. 

Direct File isn’t just a good first effort — it’s a resounding success.

At Code for America, we’ve seen firsthand how hard it is to launch large-scale government technology that actually works. Doing so requires a special combination of passion, expertise and sheer determination. To all the federal employees who passed up bigger paychecks, missed dinners with loved ones, and poured countless hours into making Direct File a reality: your work was not in vain. Direct File remains a shining example of how iterative, human-centered government programs can truly work for the people they serve.

The civic technology community is stronger, more resolute and more determined than ever. While news of what may be ahead for Direct File is disappointing, we are not deterred.

Now is the time to come together, find new ways to push this critical work forward, and double down on building government technology tools that meet people where they are, when they need it most. We will keep building. Keep pushing. Keep fighting for a government that is not just efficient, but effective. Not just digital, but deeply human.

Yes, they can end the program. But they can’t take away what it showed us — or what it set in motion. Direct File gave us a glimpse of the government we know is possible. We’ll carry those lessons forward. And in doing so, we’ll keep growing, keep improving and keep rising to meet the moment — together.

Amanda Renteria is CEO of Code for America, the nation’s leading civic technology nonprofit that partners with government to improve service delivery using technology. She can be found on LinkedIn.