Tiny Red HandsBack

Senate minority staff identified $33.5 million sunk in IRS Direct File

Ending the public filing service wrote off development spending and preserved dependence on private tax-preparation products.

Entities and roles

Relationships in this file

  1. Elon Muskended a service after public development investmentIRS Direct File
  2. Donald J. TrumpTrump-appointed senior adviser who led DOGE workElon Musk
  3. Donald J. TrumpTrump-appointed OMB director and acting CFPB directorRussell Vought

Money trail

  1. lossSenate minority staff identified $33.5 million sunk in IRS Direct File$33.5 million
    Estimated loss source
    Internal Revenue Service
    Estimated gain recipient
    Terminated software investment
    Loss or cost borne by
    Taxpayers who used free filing and federal taxpayers
    estimated · 2025-07-31 · observedPopulation Federal development spending on IRS Direct FilePeriod 2025-01-20 to 2025-07-31Basis Staff used cited IRS program-spending figures.Limits Sunk development cost is not the same as the service's projected future benefit or annual operating cost. Non-additive with the report's aggregate estimate.Open cited evidence

Claims and evidence

  1. estimateestimate

    PSI minority staff identified $33.5 million already spent developing Direct File as a sunk public cost when the Trump administration ended the IRS service.

  2. factdocumented

    Elon Musk was the Trump-appointed senior adviser who led DOGE work.

  3. factdocumented

    Russell Vought was the Trump-appointed OMB director and acting CFPB director.