Sponsors (123)
The bill would expand a free, accessible government-run tax filing system that could lower costs and improve accessibility for many taxpayers, while concentrating sensitive tax data and operational costs in the government—raising privacy, cybersecurity, implementation, and private-sector displacement risks.
Taxpayers: can prepare and file federal (and integrated state) income tax returns for free via a government-run online/mobile system, lowering out-of-pocket filing costs and increasing access.
People with disabilities and non-English speakers (including limited-English and low-income users): receive improved access through Section 508-compliant, plain-language, multilingual, and user-tested interfaces.
Taxpayers: can benefit from IRS prefilled returns using IRS records, which may reduce preparation time and lower the chance of filing errors if taxpayers review and use them.
Taxpayers and state/local governments: broader sharing of IRS data for prefilled and joint filing increases privacy risks and the potential for misuse or unauthorized disclosure of sensitive tax information.
Taxpayers: centralizing filing on a federal platform concentrates cyberattack risk on IRS systems that would hold prefilled and state-shared returns, increasing the potential impact of a breach or service disruption.
Taxpayers: remain legally responsible for the accuracy of returns even if prefilled by the government, exposing them to audits or penalties for errors they did not cause.
Based on analysis of 6 sections of legislative text.
Requires the Treasury/IRS to provide a federally run online system to prepare and electronically file individual income tax returns and bars agreements that limit providing such services.
Introduced March 4, 2026 by Brad Sherman · Last progress March 4, 2026
Requires the Treasury/IRS to create and operate a federally owned online system that lets individuals prepare and electronically file their federal income tax returns, and bars the Treasury from entering into agreements that restrict the agency from offering tax-preparation or filing services. The system must be user-tested, mobile-friendly, multilingual, accessible, able to prefill returns using IRS records at the taxpayer’s option, be prominently shown on the IRS website, include integrated customer support (including live chat), and allow filing even if the taxpayer is not otherwise required to file. Pre-enactment agreements that limit the Treasury’s ability to provide tax-preparation or filing services become void within 30 days of enactment; new agreements may not include such restrictions. The IRS must report to Congress by August 31, 2027 and annually thereafter on program usage, satisfaction, barriers, and improvement plans. For taxable years beginning after 2027, at least 50% of taxpayers in “participating States” must be eligible to use the program, with participating States defined by state integration or absence of a state income tax.