IRS Ends Direct File for 25 States in 2026 Tax Season

Significant changes are coming to tax filing options in 2026 for taxpayers in 25 states as the IRS's Direct File program, which allowed free tax filing directly with the government, is set to be discontinued. IRS Commissioner Billy Long, appointed by President Donald Trump, confirmed the program's termination, following the One Big Beautiful Bill Act that mandates the Treasury to form a task force to replace it. The Direct File program, initiated under the Biden administration, helped 141,000 taxpayers and saved users an average of $160 in preparation fees but faced criticism from Republicans and private tax services. Meanwhile, under the Finance Act of 2025, taxpayers now have up to four years to update or correct income tax returns for recent years, easing compliance. Additionally, in the UK, the HMRC's payment on account system allows taxpayers to spread their tax payments through advance installments, helping to manage cash flow and avoid large lump-sum payments in January. These developments reflect ongoing adjustments in tax filing processes and payment management intended to improve taxpayer experience and compliance.