What does Preamble of Direct File Act of 2026 do?

This bill aims to amend the Internal Revenue Code of 1986. The stated purpose is to codify the Direct File program.

What does SHORT TITLE. of Direct File Act of 2026 do?

This bill is formally titled the Direct File Act of 2026.

What does PROHIBITION ON AGREEMENTS RESTRICTING GOVERNMENT TAX of Direct File Act of 2026 do?

This section prohibits the Secretary of the Treasury (or their delegate) from entering into agreements that restrict their ability to provide tax return preparation services or software, or tax return filing services. Agreements entered into after the enactment of this Act that meet the criteria outlined in subsection (a) are prohibited. Existing agreements that meet the criteria are voided 30 days after the enactment of this Act. The term 'Secretary' is defined as the Secretary of the Treasury or their delegate.

What does CODIFICATION OF DIRECT FILE. of Direct File Act of 2026 do?

This section amends Chapter 77 of the Internal Revenue Code of 1986 by adding a new section, 7531, establishing an online tax preparation and filing program. The Secretary is required to establish and operate a program allowing taxpayers to prepare and file individual income tax returns online, utilizing IRS data to simplify the process. The program must be owned by the Federal Government, use plain language, be accessible on mobile devices, and conform to accessibility guidelines. Beginning after 2027, at least 50% of taxpayers in participating states are eligible to use the program, with eligibility intended to expand to the maximum extent possible. Participating states can either integrate state tax return filing functionality or not impose a state income tax. The Secretary must report annually to Congress on program usage, taxpayer satisfaction, and barriers to use. Taxpayers retain full responsibility for the accuracy of their returns, and no fees can be charged for using the program. The Secretary may enable taxpayers in participating states to file state and local income tax returns in conjunction with their federal return. Participating states can receive up to $1,000,000 in grants to support state tax return filing functionality. Section 6071(b) of the Internal Revenue Code is amended to establish deadlines for information returns, and a clerical amendment updates the table of sections for chapter 77. The amendments are authorized to be appropriated for fiscal years 2026 through 2035 and apply to returns for taxable years beginning after December 31, 2025.

Back to bills

Direct File Act of 2026

Last updated: 3/4/2026 · Introduced: 3/4/2026

Author: Brad Sherman (D-CA)

TL;DR (AI)

This bill establishes a permanent online tax preparation and filing program, known as Direct File, allowing taxpayers to file federal income taxes directly with the IRS.
The bill prohibits the Treasury Secretary from entering into agreements that restrict the IRS's ability to offer tax preparation and filing services.
States can participate in the Direct File program and receive grants to integrate state tax filing functionality, with the goal of expanding eligibility to as many taxpayers as possible.

119th Congressin committeeS. 3948(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account