Direct File Gets Derailed: What We Lose When We Privatize Simplicity
The IRS just got kicked off its own playing field. Section 112207 deserves a closer look.
There’s a provision buried in the latest bill that doesn’t sound like much at first glance: Section 112207 ends the IRS’s Direct File program and replaces it with a public-private partnership.
In plain language? It kills off the government’s free tax filing pilot—the one designed to help regular people file taxes quickly, safely, and without hidden fees. Then it hands that job over to private companies.
Let’s pause there.
What Was Direct File?
Direct File was simple. It was free. And it worked.
The pilot was run by the IRS in 12 states this past tax season. People who used it filed their taxes in minutes—no upsells, no spam, no third-party middlemen. For folks with straightforward tax situations (and that’s most of us), it was a game-changer.
Instead of trusting a for-profit platform to file your taxes on time (and hoping you didn’t click the wrong link), you used the same system that holds your data, cuts your refunds, and keeps your history. That’s government doing what it’s supposed to do: serve.
🚧 What’s Happening Now?
Section 112207 shuts it all down. Not just paused or reviewed—terminated. In its place: a “public-private partnership” with tax prep companies.
Sound familiar? That’s because we’ve been here before. The IRS already had a similar program—the Free File Alliance—which quietly failed when most private companies backed out and started charging users anyway. Millions of people never got access to free filing because the system was designed to steer them toward paid products.
So this isn't new. It's déjà vu.
Why It Matters
This is more than a turf battle. It’s a question of who we believe the government is for.
If we can deliver social security checks, passports, student loans, and Medicare benefits through government-run systems, why should tax filing be any different?
Direct File wasn’t perfect—but it was a start. And it was ours.
Replacing it with a private marketplace isn’t innovation. It’s retreat. It's taking a step backward into a model where convenience comes with fine print, and where public good is filtered through private profit.
What You Can Do
You don’t have to be a policy expert to see the problem. You just have to be someone who files taxes. Here are a few ways to raise your voice:
1. Share your story.
If you used Direct File and liked it, say so. Post about it. Email your representative. These tools only survive if we fight for them.
2. Use your civic toolkit.
Tools like:
let you weigh in on legislation with one click. They track your rep’s votes and help you send direct feedback.
3. Ask a better question.
Instead of asking “how can we improve the market for tax filing,” ask: Why isn’t it already free and accessible to all? That one question changes the whole frame.
Final Thought
This isn’t about tax software. It’s about dignity. Transparency. Ease. And a government that makes sense to the people it serves.
The simplest ideas don’t always survive in Washington. But that doesn’t mean they’re not worth defending.
Let’s keep pushing for systems that work—for everyone.