The IRS has issued most of the code utilized to establish the Direct File program—this would theoretically mean letting anyone create their versions of the software. But they would still need to be an approved e-file provider to file, according to Accounting Today.  The release happens right after the Trump administration stated that it intends to eliminate the program one year after it launched

The release was not spontaneous or a leak given that the IRS had already been mulling issuing the code to show its commitment to public trust while permitting the independent assessment of its work. This became officially mandated with the passage in 2024 of the SHARE IT Act, which mandated that all source code be made under an agency contract, funded only by the federal government or created by federal employees as part of their official duties. It should also be stored at one public or private repository no later than 210 days after the bill becomes law. This release happens three weeks prior to this deadline, according to Accounting Today.

"Establishing trust with taxpayers was core to our approach for designing and building Direct File," said Chris Given, who was the technology lead for the Direct File project, in a blog post explaining the release. "By creating the most accurate option for filing, by making taxes accessible to all, by keeping taxpayer data secure, and now, by publicly sharing Direct File's code, the Direct File team showed our dedication to earning taxpayers' trust."

Not all source code, documentation and metadata utilized in the development of Direct File was included in the release. Specifically, any code or data is exempt when it is deemed as Personally Identifiable Information Federal Tax Information, Sensitive But Unclassified, or source code developed for National Security Systems as defined in 40 U.S.C. Section 11103. Because of these restrictions, certain pieces of functionality have been taken out or rewritten.

Made to offer a free alternative to commercial tax preparation software, the Direct File system expanded in 25 states 2025 from 12 in 2024, helped by the nonprofit group Code for America and its FileYourStateTaxes project. A survey of more than 1,000 Direct File and FileYourStateTaxes users reportedly showed that 98% of respondents stated they were either satisfied or very satisfied with the programs, the Federal News Network said. 

In 2024, then-IRS Commissioner Danny Werfel stated they intended to make permanent the Direct File program, although the program has been criticized by Congressional Republican lawmakers and the tax preparation sector, Accounting Today reported.

But the American Coalition for Taxpayer Rights, a group representing the tax prep software industry, had stated it wants Direct File to be terminated. "We would urge the administration to terminate Direct File because it's unnecessary, wasteful, unauthorized and clearly a failure," spokesperson David Ransom stated. "The IRS should promote the public-private Free File partnership—which provided 10 times the number of returns as Direct File this year—and focus on taxpayer service and modernization efforts."