IRS open-sources Direct File tax software amid political and industry pushback - here's why

The Internal Revenue Service (IRS) moved toward government transparency by open-sourcing its Direct File software code. Direct File is a free, user-friendly tax filing tool developed in partnership with the U.S. Digital Service and 18F. So, who doesn't like free services and open source? The current Trump administration and tax preparation powerhouses, Intuit and H&R Block. 

Also: The best tax software for a stress-free tax season

Direct File was launched as a pilot program in 2024. It allowed eligible taxpayers in a limited number of states to file their federal returns directly with the IRS at no cost. The program was expanded in 2025 to more states and taxpayers. 

The pilot exceeded expectations: more than 140,000 taxpayers used Direct File in its first year, claiming over $90 million in refunds and saving an estimated $5.6 million in tax preparation fees. Users praised the ...