Direct File Act of 2026
Sponsored By: Senator Elizabeth Warren
Introduced
Summary
This bill would create a federally owned online tax preparation and filing system and block contracts that stop the Treasury from offering free tax-prep and filing tools.
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- Taxpayers: A free, interview-style online tool would let people import IRS-held data at their election, use plain language, work on mobile devices, and offer live chat and accessibility features. It would let taxpayers file even if they are not otherwise required to file.
- States: States may opt to integrate state filing with the system or qualify as participating if they have no State income tax. Participating States can get a $1,000,000 grant if their state filing meets similar standards and the Secretary aims for at least 50 percent resident eligibility.
- Administration and information filers: The bill bans post-enactment agreements that restrict the Secretary from providing preparation or filing services and voids certain prior agreements 30 days after enactment. It also creates new deadlines for electronically filed information returns: those with a required written statement must be filed by the date the statement is furnished and all other electronic information returns must be filed by March 31 of the year after the calendar year.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Free federal online tax filing
This bill would direct the Treasury to build and run a free federal website to prepare and file individual income tax returns. The site would let you import IRS records if you agree, use an interview-style form that auto-fills answers, work on mobile, use plain language, and offer live IRS chat. The program would charge no fee to taxpayers and would be prominently promoted. It would let participating States offer integrated state filing, and a State that meets standards could get a $1,000,000 grant. For tax years starting after December 31, 2025 the program would be available, and for tax years starting after 2027 at least 50% of taxpayers in participating States would be eligible. The Secretary would report to Congress by August 31, 2027, and annually thereafter, and funding would be authorized for fiscal years 2026 through 2035.
Ban on contracts limiting IRS
This bill would bar the Secretary of the Treasury from signing any agreement after enactment that limits the Secretary's legal right to provide tax return preparation or filing services or conditions agreement terms on not providing those services. It would also void any existing agreements that meet that description 30 days after enactment. The rule names the Secretary as the Treasury Secretary or the Secretary's delegate.
Earlier deadlines for information returns
This bill would change filing deadlines for certain information returns. If a return requires a written statement (other than nonemployee compensation), the return would be filed by the date the written statement must be given. All other electronic information returns with no other deadline would be due by March 31 of the year after the calendar year covered. These rules would apply to returns for tax years starting after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Elizabeth Warren
MA • D
Cosponsors
Christopher Coons
DE • D
Sponsored 2/26/2026
Ron Wyden
OR • D
Sponsored 2/26/2026
Angela Alsobrooks
MD • D
Sponsored 2/26/2026
Tammy Baldwin
WI • D
Sponsored 2/26/2026
Michael Bennet
CO • D
Sponsored 2/26/2026
Richard Blumenthal
CT • D
Sponsored 2/26/2026
Mark Warner
VA • D
Sponsored 2/26/2026
Peter Welch
VT • D
Sponsored 2/26/2026
Sheldon Whitehouse
RI • D
Sponsored 2/26/2026
Lisa Blunt Rochester
DE • D
Sponsored 2/26/2026
Cory Booker
NJ • D
Sponsored 2/26/2026
Maria Cantwell
WA • D
Sponsored 2/26/2026
Tammy Duckworth
IL • D
Sponsored 2/26/2026
Richard Durbin
IL • D
Sponsored 2/26/2026
John Fetterman
PA • D
Sponsored 2/26/2026
Ruben Gallego
AZ • D
Sponsored 2/26/2026
Kirsten Gillibrand
NY • D
Sponsored 2/26/2026
Maggie Hassan
NH • D
Sponsored 2/26/2026
Martin Heinrich
NM • D
Sponsored 2/26/2026
John Hickenlooper
CO • D
Sponsored 2/26/2026
Mazie Hirono
HI • D
Sponsored 2/26/2026
Timothy Kaine
VA • D
Sponsored 2/26/2026
Mark Kelly
AZ • D
Sponsored 2/26/2026
Andy Kim
NJ • D
Sponsored 2/26/2026
Angus King
ME • I
Sponsored 2/26/2026
Amy Klobuchar
MN • D
Sponsored 2/26/2026
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 2/26/2026
Edward Markey
MA • D
Sponsored 2/26/2026
Jeff Merkley
OR • D
Sponsored 2/26/2026
Christopher Murphy
CT • D
Sponsored 2/26/2026
Patty Murray
WA • D
Sponsored 2/26/2026
Alex Padilla
CA • D
Sponsored 2/26/2026
John Reed
RI • D
Sponsored 2/26/2026
Bernie Sanders
VT • I
Sponsored 2/26/2026
Brian Schatz
HI • D
Sponsored 2/26/2026
Adam Schiff
CA • D
Sponsored 2/26/2026
Charles Schumer
NY • D
Sponsored 2/26/2026
Jeanne Shaheen
NH • D
Sponsored 2/26/2026
Tina Smith
MN • D
Sponsored 2/26/2026
Chris Van Hollen
MD • D
Sponsored 2/26/2026
Roll Call Votes
No roll call votes available for this bill.
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