Congressman Dan Goldman Urges Trump Administration to Expand IRS Direct File Program

 

  

Washington, DC –Congressman Dan Goldman (NY-10) joined Senator Elizabeth Warren (D-MA), Senator Chris Coons (D-DE), Congresswoman Judy Chu (CA-28), Congressman Steny Hoyer (MD-05), and over 130 of his House colleagues in sending a letter to Treasury Secretary Scott Bessent and Internal Revenue Service (IRS) Commissioner-Designate Billy Long urging them to maintain and expand the IRS Direct File pilot program, which helps thousands of Americans file their taxes accurately and securely for free.  

 

“We write to highlight the success of the Internal Revenue Services’ (IRS) Direct File pilot program and stand ready to work with you to use this common-sense tool to put money back in American taxpayers’ pockets,” the Members wrote.  

 

Direct File was created in 2024 to save taxpayers time and money. In the 2024 Direct File pilot, used by more than 140,000 taxpayers, nearly 90 percent of surveyed filers said Direct File increased their trust in the IRS and nearly 90 percent had “above average” or “excellent” experiences with the program. Giving taxpayers the option to file for free through the Direct File program has saved filers approximately $5.6 million in federal tax preparation fees and is projected to save filers $11 billion a year at scale. 

 

“This program is efficient and effective, providing a vital service for millions of Americans, while also keeping their data safe from misuse. Congress does not need to pass legislation to continue this progress," the Members continued. 

 

The letter notes that some Republicans have suggested ending the Direct File Program, while Elon Musk and Vivek Ramaswamy, leaders of President Trump’s Department of Government Efficiency (DOGE), have discussed trying to create a mobile app for Americans to file their taxes free with the IRS. The members argued that cutting the Direct File Program would be detrimental to everyday Americans. 

 

“As Mr. Musk and Ms. Ramaswamy have said, Americans deserve a simple and free way to meet their tax obligations online. Ending Direct File would hurt everyday Americans. As your nomination comes before the Senate, and if you are confirmed and take office, I hope you will work with us to maintain and expand the Direct File program.” the Members concluded.  

 

Read the letter here or below: 

 

Dear Mr. Bessent and Mr. Long: 

 

We write to highlight the success of the Internal Revenue Services’ (IRS) Direct File pilot program and stand ready to work with you to use this common-sense tool to put money back in American taxpayers’ pockets. Press reports indicate that Mr. Musk and Mr. Ramaswamy, “the leaders of President-elect Donald Trump’s Department of Government Efficiency have discussed trying to create a mobile app for Americans to file their taxes free with the Internal Revenue Service.” Direct File fits the bill. 

 

In 2024, in red and blue states, Direct File helped thousands of taxpayers file accurately and securely, received excellent reviews, and is set to expand this year. Public interest in a tool to directly file taxes with the IRS prompted the Department of Treasury and the IRS to develop the Direct File pilot, which went live on March 8, 2024. Direct File is making the process of interacting with the government more efficient, a goal we all can agree on. 

 

Americans spend $160 and eight hours on average to file their taxes, often losing a chunk of their sorely-needed refund to do so. Giving taxpayers the option to file for free through Direct File program has saved filers approximately $5.6 million in federal tax preparation fees in just its pilot year and is projected to save filers $11 billion a year at scale. This program is efficient and effective, providing a vital service for millions of Americans, while also keeping their data safe from misuse. Congress does not need to pass legislation to continue this progress. If confirmed, we urge you to maintain and expand it. 

 

Direct File was created to save taxpayers time and money – and it worked. In the 2024 Direct File pilot, used by more than 140,000 taxpayers, nearly 90 percent of surveyed filers said Direct File increased their trust in the IRS and nearly 90 percent had “above average” or “excellent” experiences with the program.8 Three out of four filers reported that Direct File was “easy” or “much easier” in comparison to previous filing experience, with many reporting filing took less than an hour. Many others echoed this sentiment: 

 

“It was the fastest I’ve ever done my taxes,” said one Californian taxpayer. “I didn’t have to worry about someone upselling me.”

“It was one of the greatest experiences I have had doing [my taxes],” said an Arizonan taxpayer. 

“It was the most convenient way I’ve ever filed my taxes,” said a taxpayer in Washington State. “I got to be honest, it surprised me how simple it was.” 

 

In 2024, Direct File “issued more than $90 million in tax refunds and collected $35 million in tax balances due.” The system proved it could withstand a high volume of traffic, especially in the final days of tax season. Indeed, the pilot was so successful that, when the IRS announced it would make Direct File a permanent program, 13 additional states elected to offer this option to their taxpayers. During the 2025 tax filing season, more than 30 million taxpayers in 25 states will be eligible to file their taxes using Direct File — with nearly half of these taxpayers in states that President-Elect Trump carried.17 Direct File will be available across the nation, in red and blue states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, New York, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington State, Wisconsin and Wyoming. 

 

Launching an innovative technology product is challenging under any circumstance, even more so in government. Direct File’s initial success is indicative of the IRS’ ongoing commitment to work collaboratively with states to improve service on behalf of taxpayers. Taxpayers should have options for how they wish to meet their obligations, including options that are transparent, easy, and free, like Direct File. IRS efforts in this regard are demonstrative of the agency’s commitment to reducing burden, cutting costs, and providing taxpayers an option for filing that does not require them to turn their private tax information over to third parties. 

 

Taxpayers’ embrace of Direct File is indicative of their interest in a free, easy, private, and secure method of filing. Most Americans have simple tax returns, yet filing is still arduous and frustrating. The complexity of the tax code makes it difficult for average Americans to ensure they get it right, while also protecting their sensitive financial and personal data. Providing another option to file taxes accurately, securely, and for free does not undermine existing filing options, rather it creates healthy competition to ensure Americans are well-served, as they meet their obligations. 

 

The Direct File pilot program has proved that it is efficient, cost effective, user friendly, and secure – a pilot program that already meets the DOGE leaders’ goals. On this issue, Mr. Musk and Mr. Ramaswamy and the Republican majorities who supported the IRS Restructuring and Reform Act of 1998 are correct. We disagree with our colleagues who are calling on the President to pull the plug, harming taxpayers and undermining the work that two dozen state governments in red and blue states have done to support taxpayers for the upcoming 2025 tax filing season. As Mr. Musk and Ms. Ramaswamy have said, Americans deserve a simple and free way to meet their tax obligations online. Ending Direct File would hurt everyday Americans. 

 

As your nomination comes before the Senate, and if you are confirmed and take office, I hope you will work with us to maintain and expand the Direct File program. 

 

Thank you for your attention to this important matter.