Taxpayer Group Slams IRS Over Reported Direct File Expansion

Kara Zupkus

January 8, 2025

WASHINGTON, D.C. – Today, the Washington Reporter reported that the Internal Revenue Service (IRS) plans to roll out an expansion of its unsanctioned Direct File program. This program has proven to be unpopular, a threat to taxpayers’ financial wellbeing, and unnecessary considering the existing free filing tools available to Americans. The program should be shut down, not expanded.

In response, Taxpayers Protection Alliance (TPA) President David Williams provided the following comment: “The Direct File program has been a waste of taxpayer money and unnecessary since its inception. From bypassing congressional approval to its lack of transparency over program costs, IRS leadership has shown that it is willing to ram through this dangerous program without any oversight or accountability. Despite the rightful pushback from Congress and advocacy groups, the IRS decided to double down and expand an expensive, unpopular, underutilized, and inefficient pilot program.

“A Taxpayers Protection Alliance Foundation (TPAF) Freedom of Information Act request revealed that the IRS downplayed significant negative taxpayer feedback on its Direct File pilot program. Contrary to the agency’s public claims, TPAF’s review of more than 450 pages of respondent-written comments uncovered serious taxpayer concerns, sharing their personal data with third-party website ID.me, frequent website crashes, lower refunds, and other technical difficulties.

“The IRS has too many unresolved issues to continue to spend more money and resources on a program that never received congressional approval and that is largely redundant with the free file options already at the disposal of American taxpayers. For example, instead of committing to this program, the IRS should be prioritizing resolving the tax return backlogs or renewing their updating IT systems that continue to be privacy and security liabilities.

“TPA has said it before and will continue to say it, the IRS’ role is to be the nation’s tax collector, not the nation’s tax preparer. They should focus on their original mission instead of inefficiently trying to expand beyond their mission.”