IRS Direct File Ending: What’s Next for Your Tax Filing?
- David Peters
- Dec 5
- 2 min read
Big news for taxpayers: the IRS recently announced that its Direct File program will no longer be available for the 2026 filing season. While only a small number of taxpayers used the system last year, its discontinuation has important implications, especially for small business owners, entrepreneurs, and young families.
What Was IRS Direct File?
IRS Direct File was a free service that allowed taxpayers to submit their federal tax returns directly to the IRS without using commercial software. It was introduced as a pilot under the Inflation Reduction Act and offered a simple, low-cost filing option.
Why Its End Matters
With Direct File gone, taxpayers who counted on a free filing solution will now need to choose between:
Paid software solutions – which can range from $20 to $100+ depending on your filing needs
Professional tax services – working with a tax expert like David Peters Tax
For individuals with straightforward returns, this might not be a major shift. But for small business owners, entrepreneurs, and families with complex finances, the change highlights the growing importance of professional guidance.
How the IRS Direct File Ending Impacts Small Business and Entrepreneur Clients
If you own a business or have multiple income streams, here’s what the IRS Direct File ending means for you:
Complex Returns Need Expertise
Partnerships, S-Corps, and side businesses often require careful planning and filing. Without Direct File, navigating these returns alone can be risky.
Planning Ahead Is Critical
Now is the time to gather your documentation — income statements, business expenses, retirement contributions, and other tax-related documents — so you’re ready when filing season arrives.
Cost Considerations
While free filing disappears, professional services can help you maximize deductions and credits, often offsetting the cost of filing.
How Peters Tax Preparation & Consulting Can Help
At Peters Tax Preparation & Consulting, we’re ready to guide you through these changes and make sure you’re prepared:
Early Planning & Checklists: We provide personalized checklists, so you know exactly what to gather before filing.
Filing Options Review: We’ll help you weigh commercial software vs. professional services to find the best fit.
Maximizing Savings: From small business deductions to family credits, we ensure you don’t miss opportunities.
Transparent Process: No surprises — just expert guidance tailored to your situation.
Don’t Wait Until Filing Season
The elimination of IRS Direct File is a reminder that proactive tax planning is more important than ever. Whether you’re running a business, managing multiple income streams, or navigating family finances, early preparation can save stress, time, and money.
Schedule a consultation with Peters Tax Preparation & Consulting today and make sure your 2026 filing season is smooth, strategic, and stress-free.
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