Colorado: Governor Polis Calls on Treasury Department Not to Increases Costs for Americans with Suspension of Easy-to-Use DirectFile

DENVER ~ In a recent letter to Treasury Secretary Bessent, Governor Polis of Colorado expressed his disappointment and urged the federal government not to suspend the DirectFile tool. This tool is designed to simplify the tax filing process and ensure that Americans are taking advantage of all the credits and deductions they are eligible for.

Governor Polis stated, "I want to make it as simple as possible for people to file taxes and access the tax credits and deductions many Americans have already earned but often miss out on." He also highlighted the success of DirectFile in Colorado, where it was implemented last year as a one-stop shop for taxpayers to file their taxes and receive their refunds.

Unfortunately, due to the federal government's decision to suspend DirectFile, Coloradans will no longer have this option available to them starting in 2026. This is a setback for Governor Polis, who has been a strong advocate for the program since its inception.

Last year, 423,450 taxpayers across 8 states used DirectFile, with 140,803 successfully submitting their federal returns. This year, despite uncertainty about its future and no marketing budget, the number of users increased to 751,235 across 25 states. Additionally, over 4 million taxpayers used DirectFile's eligibility checker this year. The tool also integrated with separate filing systems in 12 states, making it easier for taxpayers to file both their federal and state returns.

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DirectFile was first launched as a tax filing tool in 2024 but its roots can be traced back almost three decades. In 1998, federal legislation called for the development of a "return free" tax filing system similar to those used in at least 36 other countries. A report from the Treasury Department in 2003 confirmed that such a system was feasible. The development of DirectFile involved collaboration between federal programmers and designers as well as input from various states. It also had bipartisan support, with 8 out of 10 American taxpayers and 83% of Republicans in favor of the IRS developing the tool.

Governor Polis's letter to Secretary Bessent highlights the effectiveness and accuracy of DirectFile, making it clear that its suspension is a disappointment for both Colorado and other states that have implemented the program. It remains to be seen if the federal government will reconsider its decision and allow DirectFile to continue helping Americans save time and money on their taxes.

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