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Elizabeth Warren Calls Out Trump To Bring Back This Biden-Era IRS Program That Saved Taxpayers Money

Could Americans see this filing option make a comeback?

By Jordan Major , Edited by Becca Borawski Jenkins

Updated Aug. 31, 2026

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Filing a tax return can come with an extra expense before taxpayers even know whether they owe the IRS or are getting a refund.

Sen. Elizabeth Warren wants to revive a Biden-era program that gave eligible Americans the option of filing their federal returns directly with the IRS online at no charge. Warren argues that taxpayers with relatively straightforward returns shouldn't have to pay private tax-preparation companies when the government could provide a free alternative that helps you keep more cash in your wallet.

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Warren wants to bring Direct File back

During a July 30 Senate Finance Committee markup of the Taxpayer Assistance and Service Act, Warren proposed an amendment that would restore Direct File and make the program permanent.

Direct File was launched as a pilot under the Biden administration during the 2024 filing season. Instead of preparing a return through commercial software or a tax professional, eligible taxpayers could answer questions online and submit their federal return directly to the IRS at no cost.

"If we truly want to make tax filing accessible and convenient, we have to do more," Warren said during the markup, before proposing that the program be restored. She added: "We also cannot stand by when the Trump administration just cut a deal giving Donald Trump a get-out-of-jail-free card for potentially cheating on his taxes."

Warren has made several attempts to revive the service. In February, she and more than 160 other lawmakers introduced legislation that would reverse the Trump administration's decision to end Direct File and make the filing option permanent.

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Direct File expanded significantly before it ended

Direct File started relatively small. During its first filing season in 2024, it was available to taxpayers with relatively simple returns in 12 states.

The program also expanded considerably for the 2025 filing season. Eligible taxpayers in 25 states could use Direct File, and the IRS expanded the types of income, deductions, and credits the system could handle.

That expansion was important because Direct File was never intended to handle every possible tax return immediately. Its initial focus was taxpayers with simpler situations, while more complicated returns could still require another filing option.

Taxpayers could potentially save on filing fees

The most obvious financial benefit was that Direct File itself didn't charge users. The Treasury Department estimated that 140,803 taxpayers used the pilot to file federal returns, claiming more than $90 million in refunds, and saved about $5.6 million in federal tax-preparation fees. That works out to about $40 per filer based on Treasury's methodology.

That also doesn't mean every taxpayer would save $40 by using Direct File. Some already file for free, while others pay considerably more depending on the software, services, and complexity of their returns.

Warren's office cites a much broader estimate that the average American taxpayer spends eight hours and $160 filing taxes each year. Her office also says a fully implemented Direct File program could save families as much as $23 billion annually when fees, time, and tax credits are considered.

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Taxpayers generally liked the program

Cost wasn't the only argument supporters made for keeping Direct File. Warren cited data showing that 94% of users rated their experience as "excellent" or "above average." IRS data from the pilot similarly showed extremely high satisfaction, with nearly nine in 10 respondents selecting one of those two ratings.

Taxpayers also told the Treasury and the IRS that they appreciated having no hidden fees or attempts to sell them additional services as they completed their returns. Some said filing directly with the IRS gave them greater confidence in the process.

Those results support Warren's argument that a government-run option can work for at least some taxpayers. They don't necessarily establish that Direct File would be the best choice for every filer, particularly those who need features or assistance beyond what the system supported.

Free tax filing options still exist

The IRS continues to offer Free File, a partnership with private tax-software companies. Taxpayers with adjusted gross income of $89,000 or less can use IRS Free File Guided Tax software, while Free File Fillable Forms are available to taxpayers who don't qualify for Guided Tax and are comfortable preparing their own returns.

The difference is that Direct File was built and operated as an IRS filing system, whereas Free File relies on participating private-sector tax software providers.

However, Warren and other lawmakers have argued that Free File isn't an adequate replacement. In February, they pointed to previous watchdog concerns about participation and the program's history while calling for Direct File to return.

Bringing Direct File back faces political hurdles

Warren's July amendment didn't advance. After consulting with Wyden during the committee meeting, she announced that she would not seek a vote on it.

That means Direct File isn't coming back as a result of this latest effort, and taxpayers shouldn't expect it to suddenly become available for the next filing season.

Warren and other Democrats are nevertheless continuing to push the issue. Their separate Direct File Act would restore the program and make it permanent, but getting legislation through a Republican-controlled Congress remains a significant obstacle.

Supporters see Direct File as a way to reduce the time and money Americans spend complying with the tax system. Meanwhile, opponents have argued that taxpayers already have free private-sector alternatives and have questioned whether taxpayers should fund the government to develop another filing platform.

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Bottom line

Direct File wasn't suitable for every tax situation, but its first-year results showed that more than 140,000 taxpayers used it and collectively saved an estimated $5.6 million in federal preparation fees.

Warren's latest amendment won't bring the program back on its own. Still, the fight over Direct File raises a straightforward question for taxpayers trying to avoid wasting money: If the IRS can provide a free filing option for relatively simple returns, should Americans have to pay a private company to file them?

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