Democrats seek to restore IRS Direct File program

(The Center Square) – A group of U.S. lawmakers introduced legislation Thursday to codify the IRS Direct File program, which the Trump administration shut down in 2025. The Direct File Act, supported by 150 Democrats across the House and Senate, would reinstate the shuttered service, which gave taxpayers the option to electronically file their federal tax returns directly with the IRS at no cost. “Americans shouldn’t have to waste valuable time or hard-earned money just to file their taxes,” Rep. Brad Sherman, D-Calif., a supporter of the bill, said. “The Direct File Act expands on the successful 2024 pilot and offers a straightforward, no-cost filing option that will make the process simpler and more affordable for working families.” According to the U.S. Treasury department, nonbusiness taxpayers spend an estimated average of about 8 hours and $160 on filing tax returns, while business taxpayers spend an average of 21 hours and $610. A report authored by the Economic Security Project