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Direct File won't happen in 2026, IRS tells states

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Re: Direct File won't happen in 2026, IRS tells states

#61

https://github.com/IRS-Public/direct-file Obviously the 2025 version will be out of date for the 2026 filing season, though public code means it can always be revived by anyone else. (previous HN threads: https://news.ycombinator.com/item?id=44182356 https://news.ycombinator.com/item?id=44131901 )

Does the "Modernized eFile API" still exist?

Re: Direct File won't happen in 2026, IRS tells states

#62

Meanwhile in pretty much all other nations you go online to the free website, see your employer contributions already filled in and acknowledge they are correct for the year, add any extra income, check boxes for relevant deductions and you’re done.

Which is basically how it works here too. If you just have W-2 income from an employer it takes less than 10 minutes to fill out the form. Sure, the system you mention is more convenient, but the difference is minimal.

Re: Direct File won't happen in 2026, IRS tells states

#63

With the rise of AI there is no excuse on why tax software should be so hard to make.

The entire reason that tax software is hard is that it can NEVER produce a wrong answer. Plus tax law is about ten thousand times more complicated than you're assuming.

No tax software or expert will never produce a wrong answer, because too many questions have no guaranteed right answer, due to inconsistent interpretatios within the IRS.

Tax filing is a matter of risk balancing, which heuristics are great at optimizing, if they incorporate enough data. Neural networks are ideal for that, but it would take a lot of data gathering to develop the model, from data that isn't easily scraped from Web pages.

Re: Direct File won't happen in 2026, IRS tells states

#65

What was wrong with using Free File Fillable Forms in the first place? It's the real deal forms just online and with nothing obscured or sugar coated. I use it every year, and while I wouldn't exactly say I enjoy doing my taxes, I do enjoy being fully aware what I'm filing and not being forced to do it on paper just because others have obtuse opinions or are lazy.

I've used the fillable forms before; the problem is that to fill them out with confidence - to even know with confidence which ones you should be filling out - requires more knowledge of tax law than the average person can reasonably be expected to possess. Now, the various self-filing software products also feel a lot like guessing, but at least they walk you through which guesses are mostly likely to be correct and…

Unless you have a unreasonably complicated return, you need absolutely no knowledge of tax law. It's all just "take the number from box X on form A and write it in box Y of form B."

Re: Direct File won't happen in 2026, IRS tells states

#66

Meanwhile in pretty much all other nations you go online to the free website, see your employer contributions already filled in and acknowledge they are correct for the year, add any extra income, check boxes for relevant deductions and you’re done.

Doesn't America have uniquely complicated tax that requires you to keep all your receipts to claim all sorts of confusing deductions? How can the IRS know what you spent your income on if you don't tell them? I've had the misfortune of having to fill in a W8-BEN-E form [1] and the first time, I just gave up and refused to work with the client because it was too complicated. The 2nd time, I got an LLM to tell me how t…

The majority of Americans are W2 wage earners that take the standard deduction.

Re: Direct File won't happen in 2026, IRS tells states

#67
post #37

Earlier quoted context omitted.

If they do, I'm filing paper. Clowns.

You know, the IRS is basically defunded, even not counting the whole shutdown thing. I wonder how many people need to file handwritten by mail before it becomes a significant problem

IRS will absolutely go after regular people who just have a W-2 and maybe a couple of 1040 forms. It's easy to verify automatically.

But if you're a rich person with dozens of companies and complicated trusts? Yep, nobody is going to be looking.

Re: Direct File won't happen in 2026, IRS tells states

#68

With the rise of AI there is no excuse on why tax software should be so hard to make.

You’re going to give your tax data - some of the most sensitive data to some constituents - to OpenAI / Google / some other startup? That seems like a nightmare of a product as far as privacy is concerned.

The only reason I care about companies having my data is that it means the government can get to it. In this case I am required to give my data to the government anyway, so why would I care if OpenAI / Google has it?

Re: Direct File won't happen in 2026, IRS tells states

#69
Ok, fine, I’ll use TurboTax.

I live and work abroad and Turbotax requires a US billing address to pay the fee of using Turbotax. :facepalm

All the other self-service options do not work and I’m not sure if the risk is worth it to file it myself.

To my fellow Expats, what are you doing?

Re: Direct File won't happen in 2026, IRS tells states

#70

Meanwhile in pretty much all other nations you go online to the free website, see your employer contributions already filled in and acknowledge they are correct for the year, add any extra income, check boxes for relevant deductions and you’re done.

Doesn't America have uniquely complicated tax that requires you to keep all your receipts to claim all sorts of confusing deductions? How can the IRS know what you spent your income on if you don't tell them? I've had the misfortune of having to fill in a W8-BEN-E form [1] and the first time, I just gave up and refused to work with the client because it was too complicated. The 2nd time, I got an LLM to tell me how t…

For most people, those deductions are less than the "standard" deduction you can take instead. For most of the people who do itemized deductions, it's mostly just your mortgage payment and state taxes, which the IRS already knows about, and maybe charitable donations.

And even if you do have a lot of things to report, why not just report those things directly and let the IRS calculate your taxes, rather than you having to do it, fill out a complicated form, then the IRS does the calculation anyways to make sure you did it right?

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