This bill, the Direct File Act of 2026, adds a new section to the tax code to create a federal online tax preparation and filing program. The program must be owned by the federal government and let taxpayers prepare and file individual income tax returns online. It requires features such as using IRS data to prefill returns, an interview-style input system, plain language, multiple languages, mobile access, accessibility under section 508, prominent placement on the IRS website, mass marketing, integrated customer support including live chat, and the ability to file even if the taxpayer is not required to file. The bill also bans the Treasury Secretary from signing agreements that limit the IRS's ability to provide tax preparation or filing services and voids any such existing agreements 30 days after enactment. It requires reports to Congress on program use beginning August 31, 2027, allows $1,000,000 grants to certain participating states that meet standards, sets deadlines for some electronic information returns, and authorizes "such sums as may be necessary" for fiscal years 2026–2035. The changes apply to tax years beginning after December 31, 2025. The bill states taxpayers remain responsible for the accuracy of their returns and that no fee may be charged for using the program.
If this law is enacted, taxpayers in states that participate could use a free, government-run online tool to prepare and file federal (and, for some states, state) income tax returns. The tool is designed to import IRS-held data, guide users with interview-style questions, work on phones, offer multiple languages, and provide live chat help. Eligibility will start expanding for tax years after 2027 so at least half of taxpayers in participating states are eligible, as determined by the Secretary. You must still make sure your return is accurate. Whether you can file state returns through the tool depends on whether your state integrates with the program or has no state income tax.
The bill authorizes appropriations of "such sums as may be necessary" to carry out the program for fiscal years 2026 through 2035. It also creates a grant option that would provide $1,000,000 to each participating State that demonstrates state filing functionality meeting program standards. No publicly available information on a total estimated cost or budgetary score is provided in the bill text.
The bill text describes a free, government-owned online filing system that uses IRS data to simplify returns, increases accessibility, offers customer support, and expands eligibility for taxpayers in participating states. Supporters frame the measure as creating a no-fee option that is easy to use, available in multiple languages, and accessible on mobile devices.
No publicly available information.