Here's a story about taxes, lobbying, and a free government service that some people really didn't want you to have. Senator Elizabeth Warren (D-Mass.) and Representative Brad Sherman (D-Calif.) dropped a bill on Thursday called the Direct File Act. Its mission? To resurrect and permanently cement the IRS's Direct File program—that's the one where you can file your taxes online directly with the government, for free, without shelling out cash to a commercial tax prep company.

Think of it as trying to make "the law of the land" something that, according to Warren, was killed off because it threatened a lucrative industry. She didn't mince words on social media, posting: "Donald Trump canceled Direct File after giant tax prep companies spent millions lobbying. Why? Because Direct File let[s] you file your taxes for free. So today, I'm introducing a bill to make Direct File the law of the land. And 160 members of Congress are joining me."

The bill itself has some teeth. It wouldn't just bring Direct File back; it would set rules to keep it alive. It blocks the IRS from entering into agreements that "restrict its ability to provide free online tax preparation or filing services," requires "seamless integration" with state tax systems that choose to participate, mandates annual usage reports, and pushes the IRS to make Direct File available to at least 50% of taxpayers in those participating states by the 2028 tax season. That's a pretty clear roadmap.

So, why was it canceled in the first place? Warren points a finger at lobbying, specifically naming Intuit, the parent company of TurboTax. She argued that Intuit gave over $1 million to Trump's inauguration and lobbied against the program. For its part, Intuit has a different view. Back in December, an Intuit spokesperson told MarketDash that Americans have long had access to free tax preparation and said Intuit has helped more than 140 million people file for free over the past 12 years. The spokesperson also questioned the program's value, arguing taxpayers would have used IRS Direct File if they wanted it and criticizing the IRS for spending over $100 million on a program that fewer than 1% of eligible filers used.

Here's the backstory: Direct File started as a limited pilot in 12 states for the 2024 filing season and expanded to 25 states for 2025. A Government Accountability Office review found the IRS planned to make it a permanent option starting in 2025 after the pilot showed taxpayers found it easier to use. But then, according to reports, the Trump administration scrapped it for the 2026 season. Internal IRS communications said Direct File "will not be available," and Warren's office said then-IRS Commissioner Billy Long confirmed Direct File was "gone."

So now we have a legislative push to bring it back for good, framed as a battle between a free public option and commercial interests that benefited from its demise. It's a classic Washington story: a pilot program shows promise, gets axed amid lobbying, and now lawmakers are trying to write it into law so the next administration can't easily undo it. Whether it passes is another question, but the argument is on the table: should filing your taxes directly with the IRS be a free, permanent service, or should that space remain dominated by private companies? Warren and Sherman are betting the answer is yes.