The second Trump administration has been watching the IRS Direct File closely for the past several months, but the most recent details regarding the GOP’s proposed resources have given it more clarity about its potential demise.

Alternatively of paying for an accountant or paid tax services like H&amp, R Block, or online revenue program, the IRS offers an online system called Direct File that enables you to record your income tax returns directly with the company for free. The system was born out of the Inflation Reduction Act, which was signed into law by former US President Joe Biden in 2022, and it was introduced in 12 states during the tax year of 2024. The IRS later claimed that 140, 000 people used it during that pilot run.

Due to President Donald Trump’s coming administration’s substantial government spending cuts programs, Direct File was already under a cloud of confusion as it expanded to 25 states for the 2025 income period. &nbsp,

Elon Musk, the Tesla CEO and head of the Department of Government Efficiency, who is responsible for many of the federal government’s most recent cuts under the Trump administration, claimed in a post on X that the Direct File office had been “deleted” even though the program continued to operate.

The proposed 2025 federal budget, which was proposed by Trump and was created by Republicans in Congress, has now clearly stated the potential end of Direct File. The budget calls for the Treasury Department to end the program as soon as 30 days after the bill is signed, if not sooner. &nbsp,

The department would be given the task of creating” a better public-private partnership between the IRS and private-sector tax preparation services,” though neither a timeline nor specifics of what that might look like would be disclosed. &nbsp,

Although the majority of taxpayers have already filed their 2024 tax returns, you still have other options if you file an extension or if you live in an area with a longer deadline. If Direct File is shut down, check to see if you can file for free with IRS Free File, Cash App Taxes, or a&nbsp, a&nbsp, a free version of online tax preparation.

CNET asked for comment on the Treasury Department’s response before publication.