Ending the IRS Direct File program harms taxpayers facing poverty
RESULTS joins its colleagues in the 125+ member Coalition for Free and Fair Filing condemning the Trump Administration’s move to cancel the free and popular Direct File tool for taxpayers.
Washington, DC, July 31, 2025—Earlier this week, the Trump Administration ended a popular and impactful free tax filing program that decreased burdensome costs and confusion for tax filers. Cancelling the Direct File tool program will have an outsized negative impact for filers facing poverty.
RESULTS Experts on Poverty helped shape the design of Direct File, which had a successful pilot in 2024. The Internal Revenue Service (IRS) expanded the program during this 2025 tax season, in which 98 percent of Direct File users reported being “very satisfied” or “satisfied.” It’s estimated that without Direct File, everyday tax filers will pay an extra $23 billion in unnecessary tax prep fees and missed tax credits.
“Ending the Direct File program will have a disproportionate harmful impact on taxpayers with low incomes, especially families with children,” said RESULTS Executive Director Joanne Carter. “Every year, millions of dollars in tax credits do not reach families to whom they’re owed. This is because filing is expensive. It is also a burdensome, time-consuming process.”
“Predatory for-profit tax prep companies also target families with lower incomes to cash in on their tax returns and tax credits. We know families use these credits and returns to meet basic needs. This money belongs with families and filers, not with tax prep companies.”
“Experts with lived experience of poverty informed the design of Direct File. It had near unanimous support from its users. Taxpayers saved precious time and money. Direct File was the embodiment of government efficiency. Eliminating it creates the very waste the administration claims to spurn.”
“RESULTS will continue its outspoken advocacy for economic justice in the tax code and beyond,” said Carter.
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Media Contact:
Laura Labarre, RESULTS
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+1 202.783.4800 x222
About RESULTS and RESULTS Educational Fund:
RESULTS supports a movement of passionate, committed everyday people using their voices to influence political decisions that will bring an end to poverty. Volunteers and staff multiply their impact through the enormous power of advocacy.
Our movement of volunteers is backed by a staff of researchers, policy analysts, and legislative and media experts. Our shared goal is the end of poverty. We have affiliates and partners across five continents, and a network of volunteers in all 50 states and worldwide. We’re a non-partisan advocacy group comprised of RESULTS Educational Fund, a nonprofit 501(c)(3) organization, and RESULTS, a nonprofit 501(c)(4) grassroots lobbying organization.