Smith Statement on Suspension and Replacement of IRS Direct File

Washington, D.C. - Today, Congressman Adrian Smith (R-NE) released the following statement upon publication of a Department of the Treasury report on suspending and replacing the Internal Revenue Service (IRS) Direct File tax filing program.

"IRS Direct File was an expensive, duplicative program which was never authorized or funded by Congress, and I want to express my appreciation to President Trump, Secretary Bessent, and CEO Bisignano for bringing this chapter to a close.

"American families and family businesses by-and-large pay their taxes accurately and on time. The Biden administration and congressional Democrats' vision of a supercharged IRS monitoring Americans' bank accounts, assessing tax, and targeting anyone who disagrees, especially farmers, ranchers, and small businesses, for audits, is inconsistent with our longstanding voluntary compliance system and with basic standards of fairness.

"As part of today's report, the Department of Treasury has correctly identified the need to improve access to new and existing free file options for basic family tax returns, and I look forward to working with the Trump administration and my congressional colleagues to ensure it happens."

BACKGROUND:

In January 2023, Reps. Adrian Smith and Michelle Steel's (R-CA) bill to repeal the Biden Administration's $80 billion IRS expansion, the Family and Small Business Taxpayer Protection Act, became the first bill passed by the House in the 118th Congress. This bill would have also repealed the IRS's controversial initial study of providing direct file services.

In 2024 and 2025, Smith led his Ways and Means Committee colleagues in writing to the House Appropriations Committee asking them to defund the Direct File program. In June 2024, Smith led Ways and Means colleagues in sending a letter to Commissioner of the Internal Revenue Service Daniel Werfel raising concerns about IRS' announced expansion of the Direct File program and asking Commissioner Werfel to respond to questions regarding statutory authority and the origin of funds allocated for development and advertisement of the program.

Smith, along with Rep. Chuck Edwards (R-NC), introduced legislation in July 2024 to terminate the IRS's unauthorized Direct File program. In December, Smith and Edwards led a letter asking President Trump to end the Direct File pilot program upon taking office in January.

In January 2025, Smith, Edwards, and Sen. Marsha Blackburn (R-TN) introduced updated legislation, which became the basis for language requiring the discontinuation of Direct File which was enacted as part of July's Working Family Tax Cuts package.