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House Republicans Pushing to End IRS Direct File are Doing the Bidding of Their Big Tax Prep Donors

WASHINGTON, D.C. –  Last month, 29 House Republicans sent a letter urging the incoming administration to end the Direct File program on “day one.” 

A new report by Public Citizen reveals one reason why those Republicans may be pushing to get rid of such a successful program that saves taxpayers money: They received more than $1.8 million combined in career campaign contributions from Big Tax Prep and their proxies: Intuit, H&R Block, the American Coalition for Taxpayer Rights, the lobbying firms the three entities hired and lobbyists working at those firms.

While the Trump administration did not end the program on day one — in Treasury Secretary Scott Bessent’s recent confirmation hearing he committed to keeping the program in place for the 2025 filing season, and this week it opened to eligible filers in 25 states — ending the program remains a stated goal of some Republicans in Congress, leaving it very much at risk. 

“Direct File is a commonsense government program that was overwhelmingly well-liked by the filers who used it during its 2024 pilot,” said Susan Harley, managing director for Public Citizen’s Congress Watch division. “Eligible filers in 25 states now have an option to directly e-file their taxes for free to the IRS. The new administration must stand up to greedy Big Tax Prep giants and their army of hired lobbyists by continuing to build on the popular Direct File program beyond this tax season.”

For this report, Public Citizen analyzed Big Tax Prep’s lobbying disclosures and the career campaign contributions of the Republican signers of the anti-Direct File letter and found, among other things:

  • $1.8 million in career contributions to signers of the Republican letter urging the administration to end the Direct File program from the Direct File opposition companies, the lobbying firms they hired and lobbyists working at those firms. This total includes more than $700,000 during the 2024 election cycle.

  • More than half of the Republican signers sit on the House Ways and Means Committee, which has jurisdiction over the IRS and tax issues. Together, these Ways and Means Republican signers received more than $1.3 million over their careers including more than $500,000 during the 2024 cycle.

  • 85 percent of the money contributed to the Republican signers during the 2024 cycle — more than $600,000 — came from lobbyists. More than half of that total — $315,000 — came from the specific lobbyists registered to lobby Congress on behalf of the Direct File opposition.

  • Rep. Adrian Smith (R-Neb.), one of the letter’s drafters, received contributions from 26 different Direct File opposition lobbyists over his career, the most of any Republican signer. This includes contributions from 14 opposition lobbyists during the 2024 cycle alone.

Taxpayers in 25 states are able to use Direct File this tax season, saving many filers hundreds of dollars. These savings can provide some financial relief at a time when budgets are stretched thin. 

Direct File should be expanded, kept permanent, and be held up as a model for government programs enacted to help average Americans — not corporate America.