IRS Free File on the Chopping Block: What Every Taxpayer Should Know

Author: Elite Consulting, P.C. | | Categories: Certified Public Accountants , EconomyAndTaxes , Federal Tax Changes , IRS Direct File , IRS Tax Changes , IRS Tax Season 2025 , Tax Accountants , Tax Advisory , Tax and Accounting Expertise , Tax Filing Tips

Blog by Elite Consulting, P.C.

Something big is happening in the world of taxes. And yes—it could affect how you file your return.

A group in the government, called DOGE (Department of Government Efficiency), wants to stop the IRS’s free tax filing tool. But here’s the twist: some DOGE leaders own stock in tax software companies, like Intuit, which makes TurboTax.

That’s raising a big question:
Are they trying to help taxpayers—or protect companies that make money from tax software?

Let’s break it down in simple terms.


The IRS made a free tool called Direct File. It lets you do your taxes online—for free, without ads or surprise fees.

Here’s why people like it:

  • Easy to use
  • Safe and secure
  • No upsells or “premium” tricks
  • It’s made by the IRS—not a private company

It’s meant to help people with simple tax returns file fast, for free.

In 2024, the IRS tested it in 12 states. Many people loved it. So, the IRS said it would offer Direct File again for 2025.

But now, things are changing.


DOGE wants to shut down Direct File.

After meeting with tax software companies, DOGE said the IRS should stop spending money on this tool.

Here’s where it gets tricky:
Some DOGE leaders own stock in the very companies that could benefit if Direct File goes away.

This includes big names like Intuit, which makes TurboTax—a company that makes billions by selling tax software.


This situation is causing concern for a few reasons:

  • It affects real people. Many taxpayers depend on free filing tools.
  • It involves big money. If Direct File disappears, more people will have to pay to file.
  • It may be unfair. If officials are helping companies they invest in, that’s a conflict of interest.

People are asking:

"Are these decisions being made for taxpayers—or for stockholders?"

That’s not a question we should have to ask when it comes to taxes.

 

If the IRS cancels Direct File after 2025, here’s what could happen:

  • People with simple tax returns may have fewer free options.
  • More taxpayers may have to pay $50–$300 to file.
  • You may face upsells or confusing software tricks.
  • Trust in the tax system could drop.

It’s especially hard for low-income families, students, and retirees—many of whom rely on free tools to file taxes.

 

During confusing times like this, working with a trusted CPA becomes even more valuable.

Here’s how a CPA firm like ours can step in and support you:

1. Give You Honest, Expert Guidance

Unlike companies that profit from upsells, we work for you—not software companies. We’ll help you:

  • Understand your tax situation
  • File correctly
  • Claim every credit and deduction you deserve

2. Offer Real Human Support

We don’t just give you software—we give you a person. Someone you can talk to, ask questions, and get clear answers from.

3. Protect You from Scams and Mistakes

If Direct File goes away, scammers may try to fill the gap. We’ll help you avoid:

  • Fake "free" services
  • Phishing attempts
  • Filing errors that could cost you money or trigger audits

4. Save You More in the Long Run

You might pay a little more to work with a CPA—but you could save thousands in the long run by avoiding costly errors or missed opportunities.

 

Right now, the IRS and taxpayers are facing a trust problem.

When government officials push to shut down a free tool—while owning stock in the companies that would benefit—it raises red flags.

But you don’t have to face tax season alone.

We’re here to be your reliable, transparent partner.
We don’t answer to shareholders. We answer to you.

 

 



READ MORE BLOG ARTICLES

Top