May 30,2024

Wyden Statement on Nationwide Expansion of IRS Direct File

Washington, D.C. — Senate Finance Committee Chair Ron Wyden, D-Ore., issued the following statement today on the IRS’s announcement that its popular, new Direct File program will be open to all 50 states and the District of Columbia starting in 2025:

“Direct File expanding nationwide is tremendous news for taxpayers all over the country who are tired of getting ripped off by the big tax prep companies that routinely upcharge for unnecessary services, oversell the quality of their products and offer crummy customer service. Commissioner Werfel and Secretary Yellen handled this by the book, taking the time to build and test out a great new public service before announcing its expansion.

“Republicans who claim the IRS lacks the authority to set up a direct file program are wrong, and they’re just hunting for an opportunity to squash it before it really takes off. The reality is, the IRS has had the authority for direct file all along, the only question was whether Congress would give it the necessary resources. Congress did that in 2022 when we passed additional funding for the IRS in the Inflation Reduction Act, a provision I was proud to write as Chairman of the Finance Committee.

“The Direct File pilot showed that when the IRS gets the funding it needs, it can provide a top-notch level of service to America’s taxpayers. This program started in a limited number of states, but the number of taxpayers who used Direct File crushed expectations and reviews were overwhelmingly positive. I’m thrilled that Oregonians are going to be able to take advantage of this new program when the next filing season comes around in 2025.  

“It’s shameful that so many politicians are doing the bidding of big tax prep companies and trying to stop Direct File however they can. A dozen Republican state attorneys general have already tried to block Direct File, and it appears they’re planning to deny taxpayers in their states the choice to use this free public service. I’m convinced that Donald Trump and Republicans in Congress will shut it down if they have the opportunity. Taxpayers must remember that Direct File is on the ballot in November.”