The free filing IRS software TurboTax wanted to kill is now open source for all Americans - know all details

IRS Direct File open sourced as TurboTax lobbying and Trump bill threaten free tax filing future- The IRS just made a major move to protect its free tax filing software—Direct File—by releasing most of its code publicly on GitHub. This decision comes at a crucial moment. As pressure mounts from Intuit, the maker of TurboTax, and political threats from Donald Trump’s budget bill, the future of free, government-backed tax filing could be in real danger.

The move to open source the code not only gives developers a peek into how the IRS built a modern, user-friendly filing tool—it’s also a clear message: the work will live on, even if Washington politics try to shut it down.

Why is Direct File under threat from Intuit and Donald Trump’s new bill?

The Direct File program, developed by teams from the US Digital Service (USDS) and 18F, was part of a pilot launched by the IRS in 2024. About 300,000 Americans used the tool, and according to Federal News Network, users gave it rave reviews for being free, fast, and simple. The idea was straightforward—make tax filing easy and accessible, directly through the IRS.

But not everyone is happy about this. Companies like Intuit, whose TurboTax software dominates the paid tax prep market, have lobbied heavily against Direct File. Now, Trump’s budget reconciliation bill includes language that could shut down Direct File entirely. According to policy experts, ending the program “is a gift to the tax-prep industry that will cost taxpayers time and money.”

What does it mean that the IRS open sourced Direct File’s code?

On GitHub, the IRS released much of the source code that powers Direct File. This is a big deal for transparency, accountability, and future development. It means anyone—from independent developers to watchdog groups—can now examine, improve, or even build upon the free software.

This move is especially significant because many believe the program is at risk of being dismantled for political reasons. By putting the code in the public domain, the IRS is essentially giving the project a second life—even if the federal government walks away.

Who are the former IRS developers now shaping the future of tax filing?

Three core developers of Direct File—Chris Given, Jen Thomas, and Merici Vinton—have left their government roles. They've now joined the Economic Security Project’s “Future of Tax Filing Fellowship,” an initiative dedicated to exploring better ways for Americans to file taxes without paying high fees.

They’re not alone. Gabriel Zucker, who helped build Direct File while working at Code for America, is also joining the fellowship. Their goal? Find new, more efficient, and less expensive models of tax filing—keeping the spirit of Direct File alive in the private sector.

Why is the fight over free tax software such a big deal for Americans?

For years, the IRS Free File program—offering no-cost filing options for low- and moderate-income Americans—has been plagued by private sector interference. Intuit and other companies have pushed hard to keep the government from creating a fully free and easy system, because it would directly threaten their profits.

Programs like Direct File show that a simple, free tax filing solution can work. And not only that—it’s popular. With over 300,000 users in its pilot year and overwhelmingly positive feedback, the public appetite for such a service is clear.

But as corporate lobbying ramps up and Trump’s bill threatens its existence, it’s a reminder of how political power can override public benefit—unless the public speaks up.

What happens next for Direct File and taxpayers?

Right now, the fate of Direct File rests in the hands of Congress and policymakers. If the Trump-backed bill passes as written, the program could be killed despite its success. However, by releasing the code to the public and rallying around the cause of free tax tools, developers and citizens are making it harder to erase the program entirely.

Meanwhile, the fellowship led by Given, Thomas, Vinton, and Zucker is pushing forward. They’re building something new—maybe even better—by applying the lessons learned from Direct File.

In short, this isn’t just a tech story—it’s a fight over who controls tax filing in America: the people or the corporations.

FAQs:

Q1: What is IRS Direct File software and why is it important?
It’s a free IRS tax filing tool that helps Americans file their taxes easily without using paid services like TurboTax.

Q2: Why is TurboTax lobbying against the IRS Direct File program?
Because it threatens their profits by offering a government-backed free tax filing option for the public.