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On August 21, the Internal Revenue Service (IRS) launched a public survey about free filing options. The IRS is asking taxpayers to provide input on the options available for online filing, exploring interest in options involving a commercial company or a program sponsored by the IRS.
The One Big Beautiful Bill Act (OBBBA) requires the IRS to present a report to Congress by October 2. The report must evaluate "taxpayer opinions and preferences regarding a taxpayer-funded, government-run service or a free service provided by the private sector."
The report will evaluate both the Free File program that allows commercial companies to offer complementary tax-filing services and the IRS Direct File program that was available in 2024 and 2025. The Direct File program has been criticized by some members of Congress.
The IRS survey indicates there would be costs for a Direct File program. The IRS states that "setting up and running the program is expected to have an initial cost to the federal government of at least $10-$20 per return processed."
The members of Congress who criticized the Direct File program pointed to the cost. The Center for Taxpayer Rights obtained information and reported that the IRS spent $64 million on Direct File. However, the report also indicated there were high levels of user satisfaction with Direct File.
Commentators have noted that the Direct File program could be a welcome solution for taxpayers. Adam Ruben of the Economic Security Project told Tax Notes, "When the survey asks users about an IRS free filing option, it raises concerns about government costs. But when it asks about private free tax prep, it does not raise any concerns that multiple of these companies have been fined for scamming customers out of free tax prep."
All taxpayers are encouraged to participate in the free online survey. The survey is available at IRS.gov. Scroll down on the main page to the "Public survey on free filing" picture. Click on the link and take the brief survey. The survey is available until September 5, 2025.
Editor's Note: This is a short and convenient survey. It explores the public’s preferences for commercial Free File and Direct File options. The survey includes asking the user to report whether they filed a tax return last year and their tax preparation method. All data from the survey will remain confidential.
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