Exposed: Republicans Trying to Kill Free 'Direct File' Program Funded by For-Profit Tax Prep Industry

The popular, free Direct File program introduced by the Internal Revenue Service in 2024 is being expanded this tax season despite the objections of dozens of congressional Republicans—but an analysis released Thursday reveals why GOP lawmakers are so intent on ensuring the Trump administration ultimately eliminates the program and forces taxpayers to rely on services from private tax filing corporations.

The 29 Republicans who sent a letter to President Donald Trump in December asking him to end Direct File with a "day-one executive order" have received more than $1.8 million in campaign contributions over the course of their careers from "Big Tax Prep and their proxies," said the consumer advocacy watchdog Public Citizen.

The companies that have donated to the lawmakers include Intuit and H&R Block, as well as the American Coalition for Taxpayer Rights—a group of lobbying firms that work on behalf of the tax filing industry.

With Direct File offered to taxpayers in 25 new states starting this week—after being available in 12 states last year—Public Citizen revealed that in 2024, the industry and its lobbying firms contributed more than $700,000 to the Republican lawmakers who wrote the letter.

Lobbyists and lobbying firms contributed most of the money detailed in the report—more than $1.5 million of the total. The remaining money was donated by political action committees (PACs) for H&R Block, Intuit, and the lobbying firms.

"The new administration must stand up to greedy Big Tax Prep giants and their army of hired lobbyists by continuing to build on the popular Direct File program beyond this tax season."

U.S. Rep. Adrian Smith (R-Neb.), who spearheaded the letter claiming Direct File poses a "threat to taxpayers' freedom from government overreach," received the second-most campaign donations of any of the signatories.

The tax filing industry and lobbying firms have given Smith $224,350 over the course of his career, second only to Rep. Darin LaHood (R-Ill.), who received $242,256.

Both also received more money from tax filing interests in 2024 than any other lawmaker.

Public Citizen noted that 12 of the signatories represent five of the states with Direct File pilot programs in place last year.

"According to data from the Economic Security Project, a combined 15.2 million taxpayers in these states were eligible for the program in the first year," reads the report. "Had they all used the program, these taxpayers would have saved more than $2.4 billion in filing fees."

With the 12 lawmakers having taken more than $640,000 from "the Direct File opposition and their proxies throughout their career... these Republicans are putting the interests of their donors ahead of their constituents," said Public Citizen.

"Direct File is a commonsense government program that was overwhelmingly well-liked by the filers who used it during its 2024 pilot," said Susan Harley, managing director for Public Citizen's Congress Watch division. "Eligible filers in 25 states now have an option to directly e-file their taxes for free to the IRS. The new administration must stand up to greedy Big Tax Prep giants and their army of hired lobbyists by continuing to build on the popular Direct File program beyond this tax season."

According to the report, donations from the tax filing industry have particularly flowed toward Republicans who sit on the House Ways and Means Committee, which has jurisdiction over the IRS and taxation.

"Together, these signers have received more than $1.3 million over their careers including more than $500,000 during the 2024 cycle," said Public Citizen. "These members account for nearly two-thirds of the Republican majority on the committee."

People in 25 states will be able to save hundreds of dollars by filing their taxes without paying a private company or giving a cut of their refund to Intuit or H&R Block, noted Public Citizen.

"These savings can provide some financial relief at a time when budgets are stretched thin," said the group. "Direct File should be expanded, kept permanent, and be held up as a model for government programs enacted to help average Americans—not corporate America."