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Nominee Bessent pledges to keep IRS Direct File operating this season and supports agency modernization; senators press on enforcement resources

2136523 · January 16, 2025
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Summary

Scott Bessent committed to maintain the IRS Direct File option for the upcoming season and said he would study the program’s design and outcomes. Senators asked whether Treasury would provide the IRS the resources and technology needed to enforce tax law, especially for high‑income taxpayers.

Ranking Member Ron Wyden pressed Scott Bessent over the future of Direct File — the IRS program that lets taxpayers file returns directly — asking for a yes-or-no commitment to preserve the option for taxpayers this filing season. Bessent replied he would "commit that for this tax season, that direct file will be operative" and said he would consult and study the program further if confirmed to ensure it met the IRS’s goals for collections, customer service and privacy.

Wyden and other Democrats then broadened the line of questioning to enforcement and IRS capacity. Wyden argued that working Americans have taxes withheld each paycheck while some wealthy taxpayers avoid comparable reporting obligations; he described that imbalance as a “double standard” and pressed Bessent on whether Congress should fund the IRS to pursue wealthy tax evasion. Bessent said he supported updating agency systems and improving data processing — including an "AI revolution" for pattern recognition — and he committed to return with a plan for increased collections if confirmed.

Bessent also told senators he had provided extensive documentation during vetting and that he would respond promptly to written questions from the committee. He described the IRS's legacy systems as outdated (referring to COBOL‑era systems), and said modernizing those systems and using new technology would be priorities in his view of improving enforcement effectiveness.

Why it matters: Direct File affects millions of taxpayers' options for filing returns, and IRS enforcement resources and IT modernization affect tax administration and equity. Senators on both sides signaled they will seek written follow up about program design, enforcement plans and funding.

Ending: Bessent committed to return with plans and promised to consult committee members; Wyden and others said they would press Treasury for specific, funded enforcement proposals to ensure compliance by wealthy taxpayers.