Sponsors (41)
The bill would expand a free, accessible federal tax-filing option and protect the Treasury's ability to offer it, at the cost of added federal expense, potential service disruptions and legal challenges, and heightened data privacy/security and accuracy liabilities for taxpayers.
Taxpayers (especially low- and middle-income filers) will have a free, federally provided online option to prepare and file individual tax returns using pre-filled IRS data, reducing out-of-pocket filing costs.
People with disabilities, non-English speakers, and mobile-only users will get a more accessible, plain-language, multi-language, and Section 508-compliant filing experience, improving equitable access to filing services.
The law preserves Treasury/IRS authority by preventing contractual clauses that would bar the government from offering tax preparation and filing tools, increasing government program independence and accountability.
All taxpayers face increased privacy and security risks because returns will be pre-filled with IRS records and the bill does not fully specify robust standards or dedicated funding for protecting that data.
Taxpayers remain legally responsible for return accuracy even when using the government-prepared filing tool, leaving them exposed to penalties if the tool errs.
Creating and operating a federal filing tool and voiding certain contractual limits will increase federal costs and administrative burden, potentially diverting IRS resources and increasing spending paid by taxpayers.
Based on analysis of 6 sections of legislative text.
Directs Treasury/IRS to build and operate a free federal online tax preparation and filing program and bars agreements that restrict that authority.
Official title: Amend the Internal Revenue Code of 1986 to codify the Direct File program.
Introduced February 26, 2026 by Elizabeth Warren · Last progress February 26, 2026
Creates a federally run, free online system the IRS must build and operate to let taxpayers prepare and file individual income tax returns online, with features like pre-filled returns (at taxpayer election), plain-language interview-style filing, mobile access, accessibility standards, multilingual support, and integrated customer help. It also bars the Treasury Secretary from entering into (or continuing) any agreement that would limit the Secretary’s legal right to provide tax-preparation, tax-software, or filing services. The bill requires outreach and reporting to Congress on program usage and barriers, sets an eligibility goal for taxpayers in participating states for tax years beginning after 2027, and clarifies taxpayers remain responsible for return accuracy. It creates an affirmative program obligation but does not specify dedicated funding, detailed operational rules, or precise eligibility and privacy safeguards in the text provided.