Treasury Secretary Scott Bessent defended the Trump administration's decision to end the IRS's Direct File program during a Senate hearing on April 22. He argued that the service, touted as free for users, actually cost taxpayers $72 million annually to serve about 300,000 people. Senator Chris Coons questioned the move, while Bessent highlighted private alternatives.
During a Senate exchange on Wednesday, Treasury Secretary Scott Bessent pushed back against criticism of canceling the IRS's Direct File pilot program. Senator Chris Coons (D-Delaware) asked why the government scrapped what he called a 'free and easy to use' option for simple tax filings. Bessent replied, 'It wasn’t free... It was $72 million for about 300,000 taxpayers.' He noted that roughly 60% of users did not complete their returns through the platform, as captured in a C-SPAN clip of the hearing. Bessent suggested taxpayers turn to private services like FreeTaxUSA, which offer federal filing at no cost. The Direct File program, launched by the IRS as a pilot, allowed eligible individuals with straightforward returns to file directly with the government, avoiding private tax preparers. It rolled out in phases with limited eligibility. Senator Elizabeth Warren (D-Massachusetts), a program supporter, has introduced legislation to reinstate it. 'It doesn’t make any sense for [President Donald] Trump and [former Trump adviser Elon] Musk to get rid of Direct File—unless they want to do a big favor for giant tax prep companies,' Warren said, referencing Musk’s Department of Government Efficiency (DOGE) initiative. Treasury officials favor expanding the existing Free File program, which partners with private software companies for free options.
