Direct File Act of 2026

Key Points

• This bill makes the IRS's Direct File program a permanent part of federal law, requiring the government to run a free, online system where people can prepare and file their income taxes without paying for private software or services.
• The system must be simple and accessible: it will use an interview-style format, pull in data the IRS already has, work on phones, be available in multiple languages, meet disability accessibility standards, and offer live chat support.
• By 2028, at least 50% of taxpayers in participating states must be eligible, with continued expansion after that. States that integrate their own tax filing with the federal system can receive $1 million grants, letting people file state and federal returns in one place for free.
• The bill bans the government from making deals with private companies that would limit the IRS's ability to offer free tax filing software. Any existing agreements like that are voided within 30 days of the bill becoming law.
• No fees can be charged for using the program, and the bill authorizes funding through fiscal year 2035. Information returns must also be filed earlier to help populate taxpayer data sooner.

Votes

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Related Bills

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