Sponsors (123)
The bill trades broader, more equitable and accessible free tax-filing services for taxpayers (especially low-income and disabled filers) against increased federal spending, privacy/security risks, and disruption to private tax-preparation businesses and contractual relationships.
Taxpayers — especially low- and middle-income filers — can prepare and file individual federal returns for free using a government-run online system with IRS data import, reducing out-of-pocket costs for paid preparers or commercial software and improving access to refunds.
People with disabilities and limited-English speakers gain easier access to filing because the system must meet Section 508 accessibility standards, support multiple languages, and be mobile-accessible, plus integrated live-chat and interview-style guidance to reduce errors.
Taxpayers who are not otherwise required to file can still use the system to claim refunds or refundable credits, increasing the likelihood that eligible low-income taxpayers receive benefit payments they would otherwise miss.
Taxpayers' return data will be handled on a new government-operated platform with increased federal–state data sharing, raising significant privacy and cybersecurity risks for taxpayers and state/local governments.
Operating, marketing, and grant costs (funded by appropriations 'such sums as may be necessary') could increase federal spending and thus long-term costs for taxpayers over FY2026–2035.
Commercial tax-preparation firms and paid preparer jobs could see reduced demand if many taxpayers shift to the free federal service, harming small businesses and workers in the tax-preparation industry.
Based on analysis of 6 sections of legislative text.
Creates a free federal online tax-preparation and filing system for individuals, prohibits Treasury agreements that limit providing those services, and funds State integration grants.
Introduced March 4, 2026 by Brad Sherman · Last progress March 4, 2026
Creates a free, government-run online tax preparation and filing system for individual income tax returns and bars the Treasury from entering agreements that limit its ability to provide such services. The system must import IRS data at a taxpayer’s election, be accessible on mobile devices, support multiple languages and accessibility standards, include live customer support, be widely promoted, and allow filing even when not required. Requires the IRS to expand eligibility over time, report annually to Congress on usage and barriers, and operate a grant program to help participating States integrate State filing; voids existing Treasury agreements that would restrict providing these services; and adjusts some information-return filing deadlines. Funding is authorized as "such sums as may be necessary" for FY2026–2035, and most provisions apply to returns for taxable years beginning after Dec 31, 2025.