Washington, D.C. — Following the Trump administration’s confirmation that the Internal Revenue Service (IRS) will no longer offer its Direct File service, a massively popular program that earned a 90% satisfaction rate from users in 2024, the American Economic Liberties Project released the following statement. 

“This decision is a gift to tax prep monopolists like Intuit and H&R Block, one that will make life more expensive and more frustrating for millions of Americans,” said Ashley Nowicki, Policy Analyst at the American Economic Liberties Project. “The Direct File program proved that government can deliver simple, cost-saving public tools that work — which is exactly why tax prep firms spent millions of dollars lobbying to end it. Expanding and improving Direct File could have been an easy win for this administration, but clearly glad-handing with monopolist donors matters more to this White House than delivering lower costs and actually increasing the efficiency of government services.” 

The IRS’ Direct File program, launched in 2023 and expanded to 25 states in 2024, offered a simple, free way for taxpayers to file their federal returns — earning a 90% satisfaction rate from users, according to the IRS. The program saved an estimated $5.6 million in filing costs for taxpayers, and was set to include “more tax situations” in 2025. But rather than building on this success, the Trump Administration and Congressional Republicans have officially killed the program — paving the way for a return to a status quo dominated by private tax prep firms like Intuit. As ProPublica detailed, Intuit and H&R Block have spent decades lobbying to block public filing options, including the law that created Direct File. At the same time, Intuit and H&R Block misled consumers into paying for services that should be free, a pattern so egregious it prompted a 2022 and 2024 FTC lawsuit. Intuit also contributed $1 million to President Trump’s inauguration committee, while both companies continue to “spend big” to impose their will over this fundamental government function. 

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.