filing

No More Direct File Through IRS

As of this tax season, Internal Revenue Service’s free filing option, Direct File, has officially been discontinued. This program was praised by a number of tax filers and even by the Government Accountability Office in one of its reports, but IRS decided that the program was too costly to continue. In November 2025, a Treasury Department report discussed how Direct File was no longer a priority, and resources should be redirected to expanding the Free File program, which outsources free tax filing options to partner programs.

This is unfortunate, as the platform was reportedly easy to use. It’s interesting that several of the larger tax preparation software companies were opposed to the IRS offering a free option, even though this option was initially only applicable to simple tax returns. It’s safe to say that the bigger tax preparation companies knew that the implementation of a simple and cost effective filing option would eventually mean the loss of many customers over time, specifically since the direct filing capabilities would eventually expand and become more sophisticated and comprehensive over time.

Though Direct File is no more, IRS continues with the Free File program, which is still beneficial for filers with an adjusted gross income of $89,000 or less. For taxpayers over the AGI ceiling, fillable forms are available for free through the IRS website.

While the discontinuance of Direct File is unfortunate, it’s good that there are still a number of affordable digital filing options for taxpayers that need it. You may view the free file partners and fillable forms by clicking on this link. Filing season will begin on January 26, so you have time to review the different platforms and see which one works best for you.

Extensions Due on October 17th

Just a gentle (or firm, depending on what you require) reminder: all of those extended tax returns are due on October 17th. If you’ve been following this blog since the summer, then you know I’ve been sounding the alarm on tax return extensions and how to prepare for filing those. Along with filing extended tax returns, this is the time to do any withdrawals of excess IRA contributions made during calendar year 2021 (excess contributions must be withdrawn to avoid penalties). This is also the time to contribute to solo 401(k) simplified employee pension (SEP) plan for tax year 2021 if you extended the filing time for Form 1040.

Whew, that’s a lot! There is still time to do a few things to close out tax year 2021 if you’ve extended your time to file. For most tax preparers, October 17th is the end of their tax season, and they can finally have a chance to rest before the beginning of the next tax season. However, if you’re a business owner, you may have a different tax filing date. If so, keeping up with the general extension dates and assigning specific tasks to complete on those dates can be a fantastic way of staying ahead of the surge of work that comes when its time to file taxes.

That’s all: get those extended taxes filed! Talk to you all soon!