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119-s-3948119th CongressWALLET

Direct File Act of 2026

Sponsored By: Senator Warren, Elizabeth [D-MA]

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

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 2/26/2026

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 2/26/2026

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 2/26/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 2/26/2026

  • Sen. Bennet, Michael F. [D-CO]

    CO • D

    Sponsored 2/26/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 2/26/2026

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 2/26/2026

  • Sen. Welch, Peter [D-VT]

    VT • D

    Sponsored 2/26/2026

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 2/26/2026

  • Sen. Blunt Rochester, Lisa [D-DE]

    DE • D

    Sponsored 2/26/2026

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 2/26/2026

  • Sen. Cantwell, Maria [D-WA]

    WA • D

    Sponsored 2/26/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 2/26/2026

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 2/26/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 2/26/2026

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 2/26/2026

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 2/26/2026

  • Sen. Hassan, Margaret Wood [D-NH]

    NH • D

    Sponsored 2/26/2026

  • Sen. Heinrich, Martin [D-NM]

    NM • D

    Sponsored 2/26/2026

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 2/26/2026

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 2/26/2026

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 2/26/2026

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 2/26/2026

  • Sen. Kim, Andy [D-NJ]

    NJ • D

    Sponsored 2/26/2026

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 2/26/2026

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 2/26/2026

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 2/26/2026

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 2/26/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 2/26/2026

  • Sen. Murphy, Christopher [D-CT]

    CT • D

    Sponsored 2/26/2026

  • Sen. Murray, Patty [D-WA]

    WA • D

    Sponsored 2/26/2026

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 2/26/2026

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 2/26/2026

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 2/26/2026

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 2/26/2026

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 2/26/2026

  • Sen. Schumer, Charles E. [D-NY]

    NY • D

    Sponsored 2/26/2026

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 2/26/2026

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 2/26/2026

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 2/26/2026

Roll Call Votes

No roll call votes available for this bill.

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