“A huge handout to tax prep companies”: The Trump admin just made doing your taxes more expensive for millions
The Trump administration has officially ended the IRS’s Direct File program, which allowed some Americans to file their taxes for free. The move sparked immediate backlash online, with critics accusing the administration of siding with tax-prep giants like TurboTax and H&R Block at the expense of working-class taxpayers.
In other countries, filing taxes is quick, free, and government-run, but in the U.S., Americans are now being pushed back toward paid software.
Nothing for free in the Land of the Free
Internal Revenue Service (IRS) Commissioner Bill Long bragged that the free tax filing program is officially dead at a tax professional summit on July 28.
"You’ve heard of Direct File," he said. "Big beautiful Billy wiped that out. I don’t care about Direct File. I care about direct audit."
What a fun, folksy way to announce to the private tax software industry that the government is taking away something free from Americans and using that money to audit more Americans instead.
What did Direct File do, and who qualified?
The Direct File program allowed citizens in certain states with simple returns to file for free. This took some financial pressure off of those working low-wage jobs who felt the sting of paying TurboTax to do something that other countries do for their citizens for free.
This decision benefits companies like H&R Block and Intuit, which have sent lobbyists to D.C. for decades to convince lawmakers to keep making paying taxes more complicated, forcing average Americans to rely on them.
In a statement to CNBC, the IRS claimed that the future of the Direct File program is uncertain, directly contradicting their commissioner. They also said that he simply wants to change the program, mentioning something about a partnership with private companies that never want you to have anything for free.
"Commissioner Billy Long is committed to modernizing the IRS and providing a taxpayer experience that meets today’s expectations, which includes giving taxpayers transparency into the status of their tax returns and audits," a spokesperson said.
"We look forward to Treasury’s forthcoming report to Congress on the Direct File program and on potential public-private partnership alternatives to Direct File, as required by the One Big Beautiful Bill."
"Americans deserve better than this mess"
This news irked many Americans tired of watching more of their paychecks disappear to increased costs every month. After the X account FactPost brought it to users there, Democratic Congressman Maxwell Alejandro Frost issued a strong response.
"So, let me get this straight:
- Direct File let people do their taxes for free.
- It worked and was popular.
- Trump just decided to shut it down, all so companies like TurboTax can keep ripping people off."
"Americans deserve better than this mess," he wrote.
Massachusetts Senator Elizabeth Warren wrote, "Direct File was an easy way for Americans to file their taxes for FREE each year."
"It's a no-brainer — and it's popular. So why in the world did the Trump administration kill it?" she asked. "To give a huge handout to giant tax prep companies like TurboTax that rip Americans off."
Those not in Congress, most of whom make a lot less money than Frost and his colleagues, are starting to feel like legislation passed by the Trump administration is a One Big Middle Finger Bill.
"This is an attack on millions of working people, and a huge handout to tax prep companies like TurboTax," wrote the @Public_Citizen X account.
"Republicans after Trump says 'I hope every American dies' and signs the 'I f****** hate you' bill into law," said @Ga1ax1an above a Squid Game gif.
User @Sericea_ posted a gif of a man shrugging to represent "the Trump administration adding to the 'f*** you America' agenda for no reason."
"President Turbo Tax once again screws Americans for not other reason than to just screw Americans," wrote @angryczeck.
"They saw something that saved people money and made their lives easier and said 'that’s gotta go,'” agreed New Mexico Senator Martin Heinrich.
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