Sponsors (41)
The bill would expand free, accessible federal tax‑filing services that can reduce costs and improve access for many taxpayers but shifts budgetary costs to the government, raises privacy and liability concerns, and risks significant competitive harm and legal costs for private preparers.
All taxpayers will be able to prepare and file individual federal tax returns online for free through an IRS-run system that auto-imports IRS data and offers live support, increasing direct access to filing services.
Low-income and middle-class filers will likely save money previously spent on paid preparers or commercial software because the federal system is free and permits filing even when not otherwise required.
Taxpayers with disabilities and non-English speakers will gain easier access to tax filing through Section 508 compliance, multi-language support, plain-language interfaces, and mobile access.
Private tax‑preparation firms and software vendors (including small tax-preparation businesses) will face increased competition and potential customer loss from a free government-run service and required marketing/hosting of the government option.
Operating, marketing, and maintaining a federal filing system is expected to increase federal spending with open-ended funding authority for FY2026–2035, creating significant budgetary costs borne by taxpayers.
Taxpayers remain legally responsible for the accuracy of returns even when the IRS prepares them, leaving filers exposed to audit risk or liability if the system or staff make errors.
Based on analysis of 6 sections of legislative text.
Creates a free federal online tax preparation and filing program, bars agreements that limit IRS filing services, and provides grants to states that integrate.
Introduced February 26, 2026 by Elizabeth Warren · Last progress February 26, 2026
Creates a federally operated, free online tax preparation and e‑file system run by the Secretary of the Treasury (IRS) that lets individuals prepare and file their federal (and integrated state/local where available) income tax returns using IRS-held data, interview-style interfaces, multilingual and accessibility features, and live support. The bill bars the Treasury Secretary from entering into agreements that limit the IRS’s ability to provide tax-preparation or filing services and voids any pre‑enactment agreements that do so. Requires the IRS to promote and place the program prominently online, offers grants to qualifying states to integrate with the system, changes certain information‑return filing deadlines, authorizes funding for implementation through FY2026–2035, and establishes annual reporting to Congress on use and barriers beginning in 2027. The program becomes effective for tax years beginning after December 31, 2025, with additional state participation thresholds phased in after 2027.