What does Preamble of Direct File Act of 2026 do?

This bill is formally titled 'To amend the Internal Revenue Code of 1986 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 right to provide tax return preparation services or software, or tax return filing services. Agreements entered into after the enactment of this Act that restrict these services are prohibited. Existing agreements that meet the criteria described in subsection (a) will be void 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 will 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 will be eligible to use the program, with eligibility expanding to the maximum extent possible. A participating state is one that either integrates state tax return filing functionality with the program or does not impose a state income tax. The Secretary must report annually to Congress on program usage, taxpayer satisfaction, and barriers to use. Taxpayers remain responsible 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 grant funding if they meet certain standards for state tax return filing functionality. Section 6071(b) of the Internal Revenue Code is amended to establish deadlines for filing information returns.

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Direct File Act of 2026

Last updated: 2/26/2026 · Introduced: 2/26/2026

Author: Elizabeth Warren (D-MA)

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.
Participating states, either those integrating state tax filing or without state income tax, may receive grant funding and allow taxpayers to file both federal and state taxes through the Direct File program.

119th Congressin committeeHR. 7806(In Committee)Official page

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Other Sections

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

4 sections

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