“To Republicans who say that making filing your taxes for free with the IRS is too expensive: For just one day of bombing Iran, we could pay for 20 years of Direct File.”
She pointed to lobbying by these two companies specifically as why the Direct File came and went.
“For years, giant tax prep companies like TurboTax and H&R Block have rigged our system so they can cash in on your hard-earned dollars,” Warren’s prepared remarks say. “It’s amazing that anyone could oppose this—especially when filing your taxes is something that Americans are required by law to do each year.”
There are two different kinds of free filing services the IRS has offered in the past. One is the Free File portal, launched in 2003 through a private-public partnership (dubbed the Free File Alliance) between the IRS and private tax preparers like H&R Block and Intuit. That is still around today: Anyone making $89,000 or less in 2025 can use the service to file their taxes for today’s deadline.
Separately, there’s Direct File, a short-lived but highly rated program that lasted for only two years. Following ProPublica’s reporting on the issue, the IRS ran a feasibility study to see how easy it would be to create an in-house direct filing program. With the results positive, the agency created a pilot program in 2024, reaching over 140,000 people in 12 states. A survey later conducted by the Treasury found that those filers claimed more than $90 million in refunds and avoided about $5.6 million in filing fees they otherwise would have paid to private providers, and roughly 90% of users rated the experience favorably.
“The Direct File pilot project was a huge success, so why was it dropped?
“Tax prep companies hated it because it hurt their bottom line. Why would you pay for TurboTax if you could easily file your taxes for free? That’s why for years, big tax prep companies have lobbied the government to keep people from using a program like Direct File,” Warren’s remarks say.
“This story tells you all you need to know about why Republicans will block my bill today. This is all about money and power. It’s about letting big corporations donate to politicians, and then politicians letting those companies rip off American families.”
