The Internal Revenue Service (IRS) has made a major move that could have lasting effects on how Americans file their taxes—regardless of whether its own Direct File program survives. With its future under threat from political forces and corporate lobbying, the IRS has released the core code behind Direct File, its pilot free tax filing platform, to the public via GitHub.
This release makes the program’s inner workings open source, allowing developers and institutions across the country to examine, adapt, and build upon it. The move isn’t a last-ditch effort to save the program from the chopping block—it was always part of the plan. The IRS’s decision aligns with the SHARE IT Act, which requires federal agencies to share custom-developed software publicly to foster transparency and collaboration.
Still, the timing is crucial, as the program faces growing opposition from powerful interests determined to dismantle it.
Why the IRS Released the Code
In a report released in 2023, the IRS outlined its reasons for publishing Direct File’s code. The agency said it wanted to promote openness and invite independent experts to scrutinize and improve the software. More importantly, it hoped other tax authorities—whether in U.S. states or other countries—could build on this work to create or improve their own tools, delivering more value to the public over time.
“Making the code public encourages accountability and offers a blueprint that others can use and refine,” the IRS report stated. “The more eyes on the code, the better it can become.”
Although the code can’t operate independently—since it relies on proprietary IRS systems—it still offers a strong framework for those looking to create their own free and compliant tax filing tools. In short, it lowers the barrier to entry for others wanting to provide taxpayer-friendly services, without needing to build from scratch.
Builders Behind Direct File Pivot to the Public Interest
While the IRS released the code, some of the program’s original creators have moved on from government work entirely. Several developers and technologists who helped build Direct File have since joined the Economic Security Project’s “Future of Tax Filing Fellowship,” where they are working on projects to simplify and democratize tax filing across the country.
Their mission is aligned with the very goals Direct File aimed to achieve—making it easier, faster, and less expensive for Americans to submit their taxes. These individuals now have access to the same code they helped create, which means their efforts could extend the life and impact of Direct File beyond the federal agency that first launched it.
Political and Industry Pushback Grows
The open-source release comes as Direct File finds itself in the crosshairs of both political leaders and corporate giants. Former President Donald Trump’s administration has made it clear that it wants to eliminate the program entirely. Trump’s proposed “Big Beautiful Bill” includes a provision that would cut all funding for Direct File, effectively killing it off.
Meanwhile, billionaire Elon Musk has reportedly used his influence over parts of the federal digital infrastructure—like 18F, the team that helped build Direct File—to halt further development of the tool. Musk has shown alignment with anti-government tech stances, and critics say his actions have directly undermined the project.
And then there’s the tax preparation industry. Companies like Intuit, which owns TurboTax, have lobbied hard against Direct File. A free, government-sponsored filing service poses a serious threat to their business models. Over the years, these firms have spent millions trying to prevent the government from offering a service that could compete with their paid products.
A Program That Might Die, But Not Disappear
Even if Direct File loses its funding and is shut down, its release into the open-source ecosystem means its influence may persist. Civic tech groups, state governments, and nonprofit organizations now have a valuable resource they can use to build new, potentially better filing platforms.
Because the software was developed by the government, it meets federal compliance and security standards—something that can be costly and difficult to achieve independently. This gives developers a head start on projects that aim to provide free, simplified tax filing for the public.
In the broader fight over tax filing accessibility, the release of the code ensures that the federal government’s investment in Direct File won’t go entirely to waste, even if political opponents succeed in defunding it.
