Economy

IRS Direct File: A government triumph

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As Tax Day 2025 approaches, around 140 million individuals will have submitted their tax returns, with nearly 40 million of them (30 percent) doing so in the final two weeks of the filing season. Each taxpayer will, on average, spend $160 and nine hours in the process.

For American taxpayers, filing annually adds to an already lengthy to-do list. Daily hurdles in accessing essential services, such as health insurance paperwork and driver’s license renewals, are compounded by inadequate customer service tools. This creates an unseen tax on daily life.

Surprisingly, working with the IRS this year has been a breath of fresh air for many Americans. In recent years, the IRS has introduced Direct File, an online program that has proven to be a model for enhancing efficiency and convenience in dealing with the government.

Direct File, allowing taxpayers to submit directly to the IRS for free, has been a major success. Most users finished their returns in under an hour, with 94 percent preferring it over other methods. The tool also streamlined state filings, taking users less than seven minutes after completing their federal return.

Expanding Direct File would be a wise investment, reducing costs and saving time for families. Although it is currently available in 25 states, maintaining and expanding the program is crucial. President Trump and Elon Musk’s cuts to IRS staff and funding risk the future of this popular program.

For decades, the tax preparation industry has held a tight grip on the market, forcing taxpayers to use costly software for a simple task that should be free. This has led to Americans collectively spending $31 billion and 1.7 billion hours annually on tax filings. Expensive software from companies like Intuit and H&R Block unnecessarily burden taxpayers.

Amidst the current tax season, the existence of Direct File as a free and user-friendly option stands out. While Trump and Musk are reducing government customer service, Direct File offers a compelling alternative. Instead of cutting staffing and programs at the IRS, expanding Direct File to nationwide coverage is essential to enhance public services and customer experience.

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