The bill offers many taxpayers a free, accessible IRS-run online filing option that can lower costs and simplify filing (especially where states participate), while concentrating sensitive data and creating fiscal and market trade-offs that raise privacy, cost, and implementation equity concerns.
Most taxpayers can use an IRS-provided free or low-cost online tax-preparation and filing system, reducing out-of-pocket filing costs for filers (including low-income taxpayers).
People in participating States can file integrated federal and State/local income tax returns together, simplifying filing and reducing time and errors for multi-jurisdiction filers.
The service is designed to be mobile-accessible, multilingual, Section 508–compliant, and to offer integrated customer support (including live chat), improving access for people with disabilities, limited-English speakers, and those needing real-time help.
Many more taxpayers' sensitive financial and tax data would be centralized at the IRS, increasing privacy and security risks if data protections fail or are breached.
Authorizing an IRS-run filing program and unspecified funding ('such sums as may be necessary') risks higher federal/operational costs and could raise taxpayer-funded spending without a clear budget cap.
Taxpayers without reliable internet access or digital skills—especially low-income and rural populations—may be disadvantaged unless sufficient outreach, devices, and offline options are provided.
Based on analysis of 6 sections of legislative text.
Introduced March 4, 2026 by Brad Sherman · Last progress March 4, 2026
Creates a free, IRS-run online tax preparation and e-filing system that lets taxpayers prepare and file individual income tax returns online, imports IRS data at a taxpayer’s choice, is mobile- and accessibility-friendly, and supports integrated state/local filing for states that opt in. It bars the Treasury from signing or enforcing agreements that would stop the Treasury from offering such software or filing services and voids any existing agreements that do so. Requires the IRS to promote and support the service, report to Congress on use and barriers, make the system multilingual and user-tested, provide customer support (including live chat), and authorizes funding through fiscal 2035; it also adds new deadlines for certain information returns and preserves taxpayer responsibility for return accuracy.