Sponsors (124)
The bill would expand free, accessible government tax-preparation and e-filing services—making filing cheaper and easier for many—while creating substantial privacy, cybersecurity, cost, and market-competition risks that lawmakers must manage.
Most taxpayers gain access to a free, government-run online and mobile system to prepare and file federal (and integrated state) income tax returns, reducing out-of-pocket filing costs.
Taxpayers can benefit from IRS prefilled returns (using IRS records), which can speed preparation and reduce errors if taxpayers review and use them.
People with disabilities and limited-English speakers will have better access because the service must meet Section 508 accessibility standards and provide plain-language, multilingual, user-tested interfaces.
Broader use of prefill and mandatory sharing with state/local agencies increases privacy risks for taxpayers by expanding the scope of personal tax data exchange.
Implementation and ongoing funding are unspecified; costs for staffing, IT, and grants could require future appropriations, increase taxpayer burden, or divert IRS resources from other services.
Centralizing federal (and integrated state) filing on a federal platform concentrates cyberattack risk on IRS systems, potentially exposing many taxpayers if systems are breached.
Based on analysis of 6 sections of legislative text.
Directs Treasury/IRS to run a free federal online tax preparation and e-filing program with prefilling, accessibility, multilingual support, and annual usage reports.
Official title: To amend the Internal Revenue Code of 1986 to codify the Direct File program.
Introduced March 4, 2026 by Brad Sherman · Last progress March 4, 2026
Creates a federally owned, online tax preparation and e-filing program run by the Treasury/IRS that lets individuals prepare and file their federal income tax returns online, including optional prefilling using IRS records, plain-language and multilingual interfaces, mobile access, accessibility compliance, and integrated support. It bars the Treasury from entering agreements that limit the agency’s ability to offer tax preparation or filing services and requires reports to Congress on usage beginning August 31, 2027; eligibility targets take effect for tax years beginning after 2027.