Rep. Chu Praises Treasury, IRS Expansion of Direct File for Taxpayers
WASHINGTON, D.C. — Today, The Department of Treasury (Treasury) and Internal Revenue Service (IRS) announced that Direct File will be a permanent, free tax filing option and invited all 50 states and the District of Columbia to join in Filing Season 2025. Rep. Judy Chu (CA-28) is a Member of the tax-writing House Ways and Means Committee and asked Secretary Janet Yellen about a potential expansion of Direct File in April.
Rep. Chu issued the following statement today:
“Today’s expansion of Direct File by the IRS and Treasury will be a massive boon for taxpayers come 2025—helping potentially millions of Americans avoid expensive e-filing software and saving them time and money in the process. The IRS and Treasury were able to overcome significant obstacles and within just five weeks of operation, the Direct file program was a resounding success, with tens of thousands of Americans utilizing its services. I’m thankful to Secretary Yellen, Commissioner Werfel, and all the dedicated public servants that designed and tested the pilot program and made today’s announcement of expanded services to taxpayers possible. As the program is scaled up, I urge the IRS and Treasury to expand it to limited English proficient taxpayers who speak languages other than Spanish—like many of my constituents in California whose primary language is Tagalog, Korean, Chinese, Japanese, or Vietnamese.
“The Direct File program is a part of Democrats’ larger project to modernize the IRS and create a tax system that works for and serves everyone. Republicans’ generations-long underinvestment in the IRS made filing taxes more frustrating and time-consuming than necessary. This underinvestment was reversed by President Biden and Democrats in Congress through our landmark Inflation Reduction Act. This investment not only allows everyday Americans to use the IRS Direct File program, but also has decreased IRS call wait times, and is enabling the agency to go after wealthy tax cheats to ensure they pay their fair share. I look forward to encouraging Californians and taxpayers from additional states that adopt Direct File to utilize the program in 2025, save time and money, and potentially discover new tax credits they’re eligible for, like the Child Tax Credit or Earned Income Tax Credit.”
In its pilot program form, the easy-to-use Direct File tool gave one-third of taxpayers—those with simple taxes and W-2 income—the option to avoid expensive tax filing software and file their taxes for free, directly with the IRS. In Filing Season 2024, Direct File was available to taxpayers in 12 states, including California. The Pilot exceeded expectations with more than 140,000 Americans successfully filing in the five weeks it was available, with these filers claiming more than $90 million in refunds and saving an estimated $5.6 million in tax preparation fees on their federal returns.