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Shaheen, Hassan Help Introduce Bill to Bring Back Direct File, Make Taxes Easier

**The Direct File Act would reverse the Trump Administration’s decision to cancel the successful and popular Direct File program**

(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) helped introduce the Direct File Act, legislation that would reverse the Trump Administration’s decision to end the highly successful Direct File program. Before being canceled, the popular Internal Revenue Service (IRS) program allowed taxpayers to file their taxes online, for free and directly with the government. This bill would restart the Direct File program and make it permanent. The legislation is led by U.S. Senators Elizabeth Warren (D-MA), Chris Coons (D-DE) and Ron Wyden (D-OR).

“With millions gearing up for tax filing season, it’s important to ensure Americans have the resources and support they need to tackle our overly complex tax system,” said Senator Shaheen. “Rather than simplify the tax system, the Trump Administration has done just the opposite—slashing critical employees and resources at the IRS while doing away with the Direct File program, which families across our country relied on to save time and money filing their taxes. I’m proud to join my colleagues on legislation that would ensure our tax system works for, not against, the American people.”

“Our government needs comprehensive reform to both make it more effective at improving people’s lives and to modernize it to meet the needs of the 21st century. Especially during tax season, many Granite Staters are rightfully frustrated by our needlessly complicated tax code and the professional help that is often required just to file their taxes and get back the money they are owed by the government,” said Senator Hassan. “The IRS’s Direct File program, first launched in 2024, allowed Granite Staters and Americans to save more of their time and hard-earned money by filing their taxes for free online. But the Trump Administration decided to cancel the Direct File program, as part of what appears to be its mission to make life harder and more expensive for families. I’m glad to join my colleagues to introduce this important legislation that restores this common-sense tool and helps people get the money that they are owed.”

The average American taxpayer spends?eight hours and $160 each year?filing their taxes with tax prep companies. In 2024, IRS launched Direct File to save families time and money. 94% of users described their experience as “excellent” or “above average,” and more than 70% of taxpayers said they would use Direct File if they were eligible. If fully implemented, Direct File was expected to save families up to?$23 billion annually?in fees, time and tax credits.

However, the Trump Administration ended the program after extensive lobbying efforts by tax companies. This decision contradicts recommendations from the independent?Government Accountability Office and?Treasury Inspector General for Tax Administration. By ending this program, the Trump Administration raises costs for Americans and makes the tax filing experience even more challenging.

In addition to directing the IRS to establish and operate a free online tax preparation and filing program, the Direct File Act would:

  • Prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services
  • Direct the IRS to publish an annual report on use levels, patterns of usage and ways to improve access to Direct File
  • Direct the IRS to enable seamless integration between state tax filing systems and Direct File, including through information sharing and a new grant program for states
  • Reduce tax fraud by getting third-party income information to the IRS earlier in the tax season, allowing the agency to verify this information before issuing refunds

In addition to Shaheen and Hassan, 35 Senators cosponsored the legislation. The bill is endorsed by 115 unions, advocacy groups and national organizations.

Click?HERE to view the bill text.

Click?HERE to view summary of the bill.

Simplifying the tax system and ensuring Americans have the resources they need to file their taxes has been a long-time priority for Senator Shaheen. Ahead of this year’s tax season, Shaheen joined her colleagues in a letter warning that the IRS was woefully unprepared to assist the American people due to mass layoffs and chaos at the agency. Shaheen has also worked to protect Granite Staters who experienced challenges when using online tax services like TurboTax and introduced the Tax Filing Simplification Act to ease the fax filing process for millions of Americans and lower costs.

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