Reed, Whitehouse Seek to Make It Easier for RIers to do Their Taxes & Reverse Trump’s Cancellation of Direct File

WASHINGTON, DC - Noting that it will cost many Americans more money to file their taxes under the Trump Administration, U.S. Senators Jack Reed and Sheldon Whitehouse have teamed up with their Senate colleagues to introduce the Direct File Act (S.3948). This legislation would reverse the Trump Administration's decision to end the highly successful Direct File program.

Direct File is the Internal Revenue Service's (IRS) popular, in-house tax filing software program. During the previous two years it allowed eligible taxpayers to file their taxes online, for free, and directly with the government. But after significant lobbying from big, commercial tax-preparation companies, the Trump Administration axed the Direct File program after the 2025 tax season.

The Direct File Act would restart the Direct File program and make it permanent so that every year Americans have a free, reliable, hassle-free way to file their taxes. The legislation would also allow state tax systems wishing to participate to integrate seamlessly with Direct File and reduce tax fraud by allowing the IRS to verify third-party income information before issuing refunds.

"The federal government needs to simplify the tax code, target tax breaks to working people, and make it easier for people to file their taxes and access their refunds. Direct File was popular because it saved people time and money. Unfortunately, President Trump sided with special interests. He is making it harder and more expensive for many Americans to pay their taxes this year. President Trump needlessly ended the effective Direct File program," said Senator Reed. "The Direct File Act would bring back this free, easy option for filing taxes, reducing the chance of tax errors and lowering tax prep costs for working families. And it would not prevent taxpayers who prefer to use private-sector tax preparation services from filing with accountants or other online platforms. But by modernizing IRS services, it would save taxpayers money in the long run."

"It's no surprise that President Trump wants to make families pay private companies to file their taxes," said Senator Whitehouse. "Our legislation would modernize IRS services and guarantee the return of free, in-house tax assistance so families can get back to enjoying their full, hard-earned refunds."

The average American taxpayer spends eight hours and $160 each year filing their taxes with tax prep companies, according to the office of U.S. Senator Elizabeth Warren (D-MA), the Ranking Member of the Senate Banking Committee and the lead sponsor of the bill.

In 2024, IRS launched Direct File to save families time and money. Nearly 300,000 taxpayers used it last year, with 94 percent of users described their experience as "excellent" or "above average." If fully implemented, Direct File could save taxpayers nationwide an estimated $23 billion annually in fees, time, and tax credits.

However, the Trump Administration decided to terminate Direct File, contradicting recommendations from the independent Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration. By ending this program, the Trump Administration raises costs for many Americans and makes the tax filing experience even more challenging.

In addition to directing the IRS to establish and operate a free online tax preparation and filing program, the Direct File Act would:

• Prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services
• Direct the IRS to publish an annual report on use levels, patterns of usage and ways to improve access to Direct File
• Direct the IRS to enable seamless integration between state tax filing systems and Direct File, including through information sharing and a new grant program for states
• Reduce tax fraud by getting third-party income information to the IRS earlier in the tax season, allowing the agency to verify this information before issuing refunds

In addition to Warren, Reed, and Whitehouse, 37 other U.S. Senators cosponsored the legislation, including: Senate Democratic Leader Chuck Schumer (D-NY) and Senators Chris Coons (D-DE), Ron Wyden (D-OR), Angela Alsobrooks (D-MD), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Maria Cantwell (D-WA), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Andy Kim (D-NJ), Angus King (I-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM.), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Patty Murray (D-WA), Alex Padilla (D-CA), Bernie Sanders (I-VT), Brian Schatz (D-HI), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Mark Warner (D-VA), and Peter Welch (D-VT).

The bill is endorsed by 115 unions, advocacy groups, and national organizations, including the AFL-CIO, Public Citizen, and Americans for Tax Fairness.

The deadline to file state and federal income tax returns on time is Wednesday, April 15.

For more tax information, or to get an update on the status of your refund, visit the IRS official website: https://www.irs.gov.

Other options for free tax assistance:

The Rhode Island Department of Revenue Division of Taxation is a resource for Rhode Islanders who have questions about their taxes.

IRS Free File

For those who earn $89,000 or less per year, IRS Free File offers free guided tax preparation. It allows users to choose from eight IRS partners: 1040Now, 1040.com, ezTaxReturn.com, FileYourTaxes.com, OnLine Taxes, TaxAct, FreeTaxUSA, and TaxSlayer.

To use Free File, visit: https://www.irs.gov/e-file-do-your-taxes-for-free

The page also offers Free File Fillable Forms for taxpayers "who are comfortable preparing their own taxes using IRS forms and instructions."

United Way of Rhode Island & Volunteer Income Tax Assistance (VITA) program

Rhode Islanders who earn less than $69,000 and need assistance with their taxes may contact the United Way of Rhode Island at: 2-1-1. Individuals who need help filing their paperwork may also call the Volunteer Income Tax Assistance (VITA) line at: 1-800-906-9887.

The VITA program is managed by the IRS, but operated by IRS partners and staffed with volunteers. It offers free tax assistance for people who need help preparing their own tax returns who generally make $60,000 or less, people with disabilities, and taxpayers with limited English language proficiency. There are over two dozen VITA sites across the state.

Tax Counseling for the Elderly (TCE) & The AARP Tax Aide Program

The TCE program offers free tax help for those who are 60 years or older. This service, which is also operated at several VITA sites around the state, specializes in providing information around pensions and retirement-related issues.

Trained AARP Foundation Tax-Aide volunteers can provide in-person tax assistance free of charge, with a focus on taxpayers who are over 50 and have low to moderate income. There are dozens of AARP tax assistance sites available across Rhode Island and help is available through walk-in and appointment options. Many sites require appointments, so check before you go to ensure service availability and note that taxpayers with complex returns may be advised to seek paid assistance. Last tax season, more than 28,300 AARP volunteers nationwide helped over 1.7 million taxpayers secure more than $1.3 billion in refunds and credits. Older adults with low income saved $578 million with the help of Tax-Aide. The program is offered in conjunction with the IRS and no AARP membership is required to participate.

To find the Tax-Aide location nearest you go to: https://www.aarp.info/TaxAideLocator

Beware of scams: The IRS will never contact taxpayers by email, text message, or social media channels to request personal or financial information. The IRS will also never call someone and demand immediate payment without first offering taxpayers the chance to appeal or question the amount owed.

A nation-wide text message scam continues to target Rhode Islanders. Texts claiming to be from the Rhode Island Division of Taxation are not legitimate. Do not provide your banking details or sensitive information. The Division does not contact taxpayers by text regarding a balance due or a refund owed.

To report a scam or fraud to the IRS, visit: https://www.irs.gov/help/report-fraud/report-tax-fraud-a-scam-or-law-violation

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