IRS Direct File Is Discontinued: What That Means for Local Taxpayers

Staff
Nov 18
4 min read

Recent reports confirm that the IRS is ending its Direct File program, a free online tax-filing system offered by the agency. For taxpayers in Vero Beach, and Brevard County, and surrounding communities, the shutdown of this service raises important questions: How will you file now? What are low-cost alternatives? And why does it make sense to consult a tax professional for this transition?

What Happened to IRS Direct File?

The IRS Direct File program will not be available during the 2026 tax filing season, according to an official email sent to state comptrollers. (AP News, 2025) AP News
The Direct File website itself now shows a “closed” status, indicating the service is no longer operational.
IRS leadership has confirmed the shutdown: Commissioner Billy Long recently stated at a summit that “the program is gone.” The Verge
According to The Wall Street Journal, the program’s low usage (under 300,000 users) and high costs (reportedly ~$41 million) contributed to the decision. The Wall Street Journal
The termination is linked to broader policy changes under the “One Big Beautiful Bill”, which reallocates resources and seeks alternative public-private models for free filing. Business Insider+1

Why This Matters for Local Taxpayers

For many residents in Indian River County (including Vero Beach) and Brevard County, Direct File was a simple, no-cost way to file basic returns. With its elimination:

Taxpayers who relied on the program may now need to shift to commercial tax software, paid preparers, or other free-file services.
There is a risk that individuals with little experience or resources might struggle to find a trustworthy, affordable alternative.
Without free government-hosted filing, the value of professional tax help increases, particularly for ensuring accuracy, compliance, and proper credit claims.

Good, Low-Cost Alternatives Available Locally

Fortunately, there are other, no- or low-cost options available—for both Vero Beach and Brevard-area residents:

United Way / VITA Program (Indian River County)
- The United Way of Indian River County runs a Volunteer Income Tax Assistance (VITA) program for taxpayers with annual income below certain thresholds. United Way of Indian River County+1
- In 2025, VITA returned over $1.94 million in refunds to local families, including Earned Income Tax Credit and other credits. United Way of Indian River County
- They also offer MyFreeTaxes, an IRS-certified online platform for free federal and state filing. United Way of Indian River County
IRS Free File
- While Direct File is ending, the IRS still maintains its longstanding Free File program in partnership with private tax software companies. This remains a viable, low-cost option for many.

Why It’s More Important Than Ever to Use a CPA

With the elimination of a direct, free government filing tool, navigating tax filing becomes more complex. Here's why working with a legally compliant, ethical CPA firm like DiSalvo Tax & Accounting matters:

Compliance assurance: Professionals know the IRS tax code and help avoid costly mistakes, missing credits, or inaccurate filings.
Strategic filing: A CPA can help clients leverage the right credits, deductions, and filing methods to optimize returns.
Support for unusual or complex situations: For those with side income, gig work, investments, or small business revenue, the certainty a professional provides is especially valuable.

What You Should Do Next

If you previously planned to use Direct File:

Evaluate other options: Look into United Way VITA (especially for low-to-moderate income), IRS Free File, or reputable commercial tax software.
Gather your documents early: W-2s, 1099s, and any other income records will be needed regardless of how you file.
Consider a CPA or tax professional review: Even for a simple return, a professional can certify that everything is correct and that you’ve claimed what you’re eligible for.

Don’t Skip Filing — Penalties Often Cost Far More Than Filing Your Return

With the closure of IRS Direct File, some taxpayers may feel unsure about where to turn next — but it is critical not to skip filing your tax return. Even if your situation feels complicated or you believe you can’t afford help, the risks of not filing are far more costly. The IRS imposes a Failure-to-File penalty that accumulates rapidly. Interest also accrues on top of penalties, and for some taxpayers, the cost of non-compliance can end up being hundreds or thousands of dollars — far more than the cost of using a CPA or a low-cost tax preparation program.

If you owe taxes, filing late also triggers a Failure-to-Pay penalty, which continues until your balance is resolved. Even filing a zero-balance return late can create issues with your tax records, delay refunds, and increase the likelihood of IRS notices. Simply put, avoiding or delaying your tax filing is never worth the risk. The safest, most cost-effective path is to file on time and use a reputable preparer or a qualified free-file option if you are eligible.

References (APA 7th Edition)

AP News. (2025, November 5). IRS Direct File won’t be available next year. Here’s what that means for taxpayers. https://apnews.com/article/04f2d0c31bec80b55d122a0e76e08c36

United Way of Indian River County. (n.d.). Vita Tax Prep: Free tax preparation if you made $67,000 or less. https://unitedwayirc.org/taxes/ United Way of Indian River County

United Way of Indian River County. (2025, May 27). United Way’s free tax program returns nearly $2 million to Indian River County residents. https://unitedwayirc.org/united-ways-free-tax-program-returns-nearly-2-million-to-indian-river-county-residents/ United Way of Indian River County

United Way of Indian River County. (n.d.). Free, Online Tax Filing. https://unitedwayirc.org/free-online-tax-filing/ United Way of Indian River County

OpenAI. (2025, November 18). Assisted analysis of IRS Direct File termination and free tax filing alternatives. ChatGPT (GPT-5 model).

Disclaimer: The information in this article is for general informational purposes only and should not be considered tax, accounting, or legal advice. Every situation is unique, and results may vary. For guidance specific to your circumstances, please consult a qualified professional.