HR7806119th CongressWALLET

Direct File Act of 2026

Sponsored By: Representative Sherman

Introduced

Summary

A government-operated online tax preparation and filing program would create a free, interview-style, auto-filled way for people to prepare and submit federal returns using IRS records. The bill would also bar agreements that limit or delay the federal government from offering filing software and would void existing restrictive contracts 30 days after enactment.

Show full summary
  • Households and taxpayers: Would gain a plain-language, multilingual, mobile-friendly filing tool with automatic data input and integrated support, and could use it even if they are not required to file.
  • States: Could opt in to provide integrated state filing or qualify as participating if they have no state income tax. Participating States would be eligible for a $1.0 million grant if their state filing meets federal standards, and the program aims for at least 50 percent eligibility among residents in participating States after 2027.
  • Tax administration and vendors: The bill would prohibit public or private contracts that block the government from offering filing services and would change deadlines for certain information returns. The Secretary would report to Congress by August 31, 2027 and annually on usage, satisfaction, and barriers to use.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Free federal tax filing website

If enacted, the Treasury would create a Federal Government‑owned website to prepare and file individual income tax returns for free. The site would import IRS records at your election, use an interview‑style, user‑tested input process, and work on mobile devices. It would use plain language, multiple languages, meet section 508 accessibility rules, and be promoted widely on TV, radio, and social media. The site would include integrated customer support such as live chat and would allow filing even if you are not required to file that year. For tax years starting after 2027, not less than 50 percent of taxpayers in participating States would be eligible, and the Secretary would expand eligibility as practicable.

State filing, grants, and contract bans

If enacted, taxpayers in States that elect to join could file State or local income tax returns at the same time as their Federal return, subject to tax privacy rules under section 6103. The bill would allow sharing return information with State and local tax agencies for that purpose. States that show their filing functionality meets standards like the Federal program could receive a $1,000,000 grant. The Treasury would be barred from signing new agreements after enactment that prevent it from offering filing services, and any existing agreement that restricts the Secretary would be void 30 days after enactment.

Sponsors & CoSponsors

Sponsor

Sherman

CA • D

Cosponsors

  • Beyer

    VA • D

    Sponsored 3/4/2026

  • Hoyer

    MD • D

    Sponsored 3/4/2026

  • Chu

    CA • D

    Sponsored 3/4/2026

  • Pocan

    WI • D

    Sponsored 3/4/2026

  • Aguilar

    CA • D

    Sponsored 3/4/2026

  • Amo

    RI • D

    Sponsored 3/4/2026

  • Adams

    NC • D

    Sponsored 3/4/2026

  • Balint

    VT • D

    Sponsored 3/4/2026

  • Barragan

    CA • D

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  • Beatty

    OH • D

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  • Bonamici

    OR • D

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  • Brownley

    CA • D

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  • Carson

    IN • D

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  • Casten

    IL • D

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  • Castor (FL)

    FL • D

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  • Cherfilus-McCormick

    FL • D

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  • Cisneros

    CA • D

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  • Clarke (NY)

    NY • D

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  • Cohen

    TN • D

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  • Conaway

    NJ • D

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  • Costa

    CA • D

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  • Davis (IL)

    IL • D

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  • Dean (PA)

    PA • D

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  • DeGette

    CO • D

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  • DeLauro

    CT • D

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  • DelBene

    WA • D

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  • Deluzio

    PA • D

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  • Dexter

    OR • D

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  • Doggett

    TX • D

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  • Elfreth

    MD • D

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  • Fields

    LA • D

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  • Fletcher

    TX • D

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  • Foster

    IL • D

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  • Foushee

    NC • D

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  • Frankel, Lois

    FL • D

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  • Friedman

    CA • D

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  • Frost

    FL • D

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  • Garamendi

    CA • D

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  • Garcia (CA)

    CA • D

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  • Garcia (TX)

    TX • D

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  • Garcia (IL)

    IL • D

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  • Goldman (NY)

    NY • D

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  • Gomez

    CA • D

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  • Green, Al (TX)

    TX • D

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  • Grijalva

    AZ • D

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  • Harder (CA)

    CA • D

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  • Hayes

    CT • D

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  • Himes

    CT • D

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  • Horsford

    NV • D

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  • Houlahan

    PA • D

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  • Huffman

    CA • D

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  • Ivey

    MD • D

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  • Jacobs

    CA • D

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  • Jayapal

    WA • D

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  • Johnson (GA)

    GA • D

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  • Kelly (IL)

    IL • D

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  • Kennedy (NY)

    NY • D

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  • Khanna

    CA • D

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  • Landsman

    OH • D

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  • Larsen (WA)

    WA • D

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  • Latimer

    NY • D

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  • Lee (PA)

    PA • D

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  • Lynch

    MA • D

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  • Mannion

    NY • D

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  • Matsui

    CA • D

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  • McBride

    DE • D

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  • McClain Delaney

    MD • D

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  • McClellan

    VA • D

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  • McCollum

    MN • D

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  • McDonald Rivet

    MI • D

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  • McGovern

    MA • D

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  • McIver

    NJ • D

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  • Menendez

    NJ • D

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  • Mfume

    MD • D

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  • Moulton

    MA • D

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  • Mullin

    CA • D

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  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

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  • Ocasio-Cortez

    NY • D

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  • Olszewski

    MD • D

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  • Omar

    MN • D

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  • Pallone

    NJ • D

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  • Pingree

    ME • D

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  • Pressley

    MA • D

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  • Quigley

    IL • D

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  • Ramirez

    IL • D

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  • Randall

    WA • D

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  • Raskin

    MD • D

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  • Salinas

    OR • D

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  • Sanchez

    CA • D

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  • Scanlon

    PA • D

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  • Schakowsky

    IL • D

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  • Schrier

    WA • D

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  • Scott (VA)

    VA • D

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  • Scott, David

    GA • D

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  • Simon

    CA • D

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  • Smith (WA)

    WA • D

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  • Soto

    FL • D

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  • Stansbury

    NM • D

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  • Swalwell

    CA • D

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  • Takano

    CA • D

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  • Thanedar

    MI • D

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  • Thompson (MS)

    MS • D

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  • Titus

    NV • D

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  • Tlaib

    MI • D

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  • Tokuda

    HI • D

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  • Tonko

    NY • D

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  • Trahan

    MA • D

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  • Suozzi

    NY • D

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  • Torres (NY)

    NY • D

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  • Vargas

    CA • D

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  • Veasey

    TX • D

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  • Velazquez

    NY • D

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  • Vindman

    VA • D

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  • Walkinshaw

    VA • D

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  • Wasserman Schultz

    FL • D

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  • Watson Coleman

    NJ • D

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  • Williams (GA)

    GA • D

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  • DeSaulnier

    CA • D

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  • Correa

    CA • D

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  • Subramanyam

    VA • D

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  • Meng

    NY • D

    Sponsored 3/4/2026

Roll Call Votes

No roll call votes available for this bill.

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