Sponsors (124)
Introduced March 4, 2026 by Brad Sherman · Last progress March 4, 2026
The bill would expand a free, accessible federal tax‑filing service that could save time and money for many taxpayers and improve accessibility, but it centralizes sensitive tax data, requires public funding, and risks crowding out private providers and creating legal/operational costs.
Most taxpayers can prepare and file federal returns for free on a government-run online/mobile system, lowering out-of-pocket filing costs and expanding access to free tax-prep options.
People with disabilities, non‑English speakers, and low‑literacy users gain better access because the service must meet Section 508 accessibility standards, use plain language, multilingual interfaces, and user‑tested flows.
The IRS can offer prefilled returns using its records, which may reduce filing time and errors for taxpayers who review and use them.
Concentrating federal filing, prefill, and data-sharing on a single government platform increases privacy and cybersecurity risks for all taxpayers if IRS/state data are breached or targeted.
Building and operating a government tax‑prep and integrated filing system requires staffing, IT, and implementation funding; unspecified costs and future appropriations could increase taxpayer burden or divert IRS resources from other services.
Expanded government involvement in tax preparation could crowd out private tax‑prep businesses, reducing competition and potentially harming small tax‑preparation firms and local providers.
Based on analysis of 6 sections of legislative text.
Requires Treasury/IRS to provide a federally owned online system to prepare and e‑file individual income tax returns, with optional IRS prefilled returns and broad accessibility and support features.
Requires the Treasury (acting through the IRS) to create and operate a federally owned online system that lets individuals prepare and e-file their federal income tax returns, including an option to prefill returns using IRS records, interview-style guidance, plain language, multiple languages, mobile access, and accessibility features. It also bars the Treasury from entering into agreements that would limit its legal right to provide tax preparation, software, or filing services and voids pre-existing agreements that impose such limits. Sets visibility and customer-support requirements (prominent IRS placement, wide promotion, integrated support including live chat), allows filing even when a taxpayer is not required to file, and requires the Treasury to report to Congress on usage and barriers (first report due Aug 31, 2027). For tax years beginning after 2027, the program must be structured so at least 50% of taxpayers in qualifying "participating States" are eligible to use it; the Treasury has discretion over eligibility and to expand it as much as possible. The text creates an affirmative duty to provide the service but does not specify funding levels, technical standards, or enforcement details.