WASHINGTON, DC – The American Coalition for Taxpayer Rights (ACTR), the trade association for the nation’s leading tax preparation and tax software companies and financial institutions that offer tax-time financial products, released the following statement today regarding the Treasury Department’s new report on tax preparation options, Direct File, and IRS operations more broadly:
“The decision by the Treasury Department and IRS to suspend Direct File is in the best interests of American taxpayers and the IRS. The failed Direct File project was plagued by low taxpayer interest, high costs, and the fact that it was never authorized by Congress. It was a distraction to IRS and the agency’s mission.
“The report also highlights the importance of the existing Free File Program, a public-private partnership that provided more than 3 million free federal income tax returns at virtually no cost to the federal government. Furthermore, private-sector tax preparers provided an additional 22 million commercial free federal returns to taxpayers this year.
“Tax preparers are eager to work with the IRS and policymakers to build upon this strong foundation and further promote a variety of free tax preparation options. We’re focused now on the next tax season, and helping Americans claim credits and deductions for which they are eligible and partnering with the IRS to deliver a successful filing season in 2026.”
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