HR7806119th CongressWALLET

Direct File Act of 2026

Sponsored By: Representative Sherman, Brad [D-CA-32]

Introduced

Summary

A federally owned online tax preparation and filing program would be created and the bill would block any government deals that stop the IRS from offering its own filing tools. It sets usability, accessibility, and promotion rules and allows integrated state filing for participating States.

Show full summary
  • Taxpayers and families: A free, government-run filing tool would be available with plain language, multiple languages, mobile access, live chat help, and the option to auto-import IRS records. Taxpayers could file even if they are not otherwise required to file for that year.
  • States and state tax agencies: States that integrate state returns or have no income tax could participate. For tax years after 2027 at least 50 percent of taxpayers in participating States must be eligible initially. A participating State may receive a $1.0 million grant if it meets the program standards.
  • IRS, preparers, and reporting rules: The bill would prohibit new or continued agreements that restrict the Secretary from providing tax preparation or filing services and would void existing such agreements 30 days after enactment. It would also set a March 31 deadline for many electronically filed information returns for the year after the calendar year.

The program provisions would apply to returns for taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

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

Free federal online tax filing

If enacted, the bill would require the Treasury to run a federally owned, no-fee website to prepare and file individual income tax returns. The site would be user-tested, interview-based, use plain language, work on mobile devices, be accessible under Section 508, and be available in multiple languages. At a taxpayer's election the site would import IRS-held data into a return and let people file even if they are not required to file that year. The program would include integrated customer support (including live chat), a prominent IRS website link, and a mass marketing campaign. For tax years starting after 2027, the program would aim to make at least 50% of taxpayers in participating States eligible to use it. Participating States are those that add integrated state filing or those that do not have a state income tax; a participating State that shows similar state filing functionality could get a $1,000,000 grant. State integration and information sharing would be subject to federal tax privacy rules (section 6103). The bill would also bar the Treasury from signing new agreements that limit its right to provide tax preparation or filing services, and would void any existing such agreements 30 days after enactment. Taxpayers would still be responsible for the accuracy of their returns, and no fee could be charged for using the program. The Secretary must report to Congress by August 31, 2027 and annually after, and Congress would authorize "such sums as may be necessary" for fiscal years 2026 through 2035 to carry out these changes.

New deadlines for information returns

If enacted, the bill would change some filing dates for certain information returns. An information return that must be accompanied by a written statement (other than returns for nonemployee compensation) would be due by the same date the written statement is required. Other electronically filed information returns under the same subpart would be due by March 31 of the year after the calendar year to which the returns relate. These changes would apply to returns for tax years starting after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Sherman, Brad [D-CA-32]

CA • D

Cosponsors

  • Rep. Beyer, Donald S. [D-VA-8]

    VA • D

    Sponsored 3/4/2026

  • Hoyer

    MD • D

    Sponsored 3/4/2026

  • Rep. Chu, Judy [D-CA-28]

    CA • D

    Sponsored 3/4/2026

  • Rep. Pocan, Mark [D-WI-2]

    WI • D

    Sponsored 3/4/2026

  • Aguilar

    CA • D

    Sponsored 3/4/2026

  • Rep. Amo, Gabe [D-RI-1]

    RI • D

    Sponsored 3/4/2026

  • Adams

    NC • D

    Sponsored 3/4/2026

  • Rep. Balint, Becca [D-VT-At Large]

    VT • D

    Sponsored 3/4/2026

  • Barragan

    CA • D

    Sponsored 3/4/2026

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 3/4/2026

  • Bonamici

    OR • D

    Sponsored 3/4/2026

  • Rep. Brownley, Julia [D-CA-26]

    CA • D

    Sponsored 3/4/2026

  • Carson

    IN • D

    Sponsored 3/4/2026

  • Casten

    IL • D

    Sponsored 3/4/2026

  • Rep. Castor, Kathy [D-FL-14]

    FL • D

    Sponsored 3/4/2026

  • Cherfilus-McCormick

    FL • D

    Sponsored 3/4/2026

  • Cisneros

    CA • D

    Sponsored 3/4/2026

  • Rep. Clarke, Yvette D. [D-NY-9]

    NY • D

    Sponsored 3/4/2026

  • Cohen

    TN • D

    Sponsored 3/4/2026

  • Conaway

    NJ • D

    Sponsored 3/4/2026

  • Costa

    CA • D

    Sponsored 3/4/2026

  • Davis (IL)

    IL • D

    Sponsored 3/4/2026

  • Rep. Dean, Madeleine [D-PA-4]

    PA • D

    Sponsored 3/4/2026

  • Rep. DeGette, Diana [D-CO-1]

    CO • D

    Sponsored 3/4/2026

  • Rep. DeLauro, Rosa L. [D-CT-3]

    CT • D

    Sponsored 3/4/2026

  • DelBene

    WA • D

    Sponsored 3/4/2026

  • Rep. Deluzio, Christopher R. [D-PA-17]

    PA • D

    Sponsored 3/4/2026

  • Rep. Dexter, Maxine [D-OR-3]

    OR • D

    Sponsored 3/4/2026

  • Rep. Doggett, Lloyd [D-TX-37]

    TX • D

    Sponsored 3/4/2026

  • Elfreth

    MD • D

    Sponsored 3/4/2026

  • Rep. Fields, Cleo [D-LA-6]

    LA • D

    Sponsored 3/4/2026

  • Fletcher

    TX • D

    Sponsored 3/4/2026

  • Rep. Foster, Bill [D-IL-11]

    IL • D

    Sponsored 3/4/2026

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 3/4/2026

  • Rep. Frankel, Lois [D-FL-22]

    FL • D

    Sponsored 3/4/2026

  • Friedman

    CA • D

    Sponsored 3/4/2026

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 3/4/2026

  • Rep. Garamendi, John [D-CA-8]

    CA • D

    Sponsored 3/4/2026

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 3/4/2026

  • Rep. Garcia, Sylvia R. [D-TX-29]

    TX • D

    Sponsored 3/4/2026

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 3/4/2026

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 3/4/2026

  • Gomez

    CA • D

    Sponsored 3/4/2026

  • Rep. Green, Al [D-TX-9]

    TX • D

    Sponsored 3/4/2026

  • Grijalva

    AZ • D

    Sponsored 3/4/2026

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 3/4/2026

  • Rep. Hayes, Jahana [D-CT-5]

    CT • D

    Sponsored 3/4/2026

  • Himes

    CT • D

    Sponsored 3/4/2026

  • Rep. Horsford, Steven [D-NV-4]

    NV • D

    Sponsored 3/4/2026

  • Rep. Houlahan, Chrissy [D-PA-6]

    PA • D

    Sponsored 3/4/2026

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 3/4/2026

  • Ivey

    MD • D

    Sponsored 3/4/2026

  • Rep. Jacobs, Sara [D-CA-51]

    CA • D

    Sponsored 3/4/2026

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 3/4/2026

  • Johnson (GA)

    GA • D

    Sponsored 3/4/2026

  • Rep. Kelly, Robin L. [D-IL-2]

    IL • D

    Sponsored 3/4/2026

  • Kennedy (NY)

    NY • D

    Sponsored 3/4/2026

  • Khanna

    CA • D

    Sponsored 3/4/2026

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 3/4/2026

  • Rep. Larsen, Rick [D-WA-2]

    WA • D

    Sponsored 3/4/2026

  • Rep. Latimer, George [D-NY-16]

    NY • D

    Sponsored 3/4/2026

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 3/4/2026

  • Rep. Lynch, Stephen F. [D-MA-8]

    MA • D

    Sponsored 3/4/2026

  • Mannion

    NY • D

    Sponsored 3/4/2026

  • Rep. Matsui, Doris O. [D-CA-7]

    CA • D

    Sponsored 3/4/2026

  • McBride

    DE • D

    Sponsored 3/4/2026

  • Rep. McClain Delaney, April [D-MD-6]

    MD • D

    Sponsored 3/4/2026

  • McClellan

    VA • D

    Sponsored 3/4/2026

  • McCollum

    MN • D

    Sponsored 3/4/2026

  • Rep. McDonald Rivet, Kristen [D-MI-8]

    MI • D

    Sponsored 3/4/2026

  • McGovern

    MA • D

    Sponsored 3/4/2026

  • Rep. McIver, LaMonica [D-NJ-10]

    NJ • D

    Sponsored 3/4/2026

  • Rep. Menendez, Robert [D-NJ-8]

    NJ • D

    Sponsored 3/4/2026

  • Mfume

    MD • D

    Sponsored 3/4/2026

  • Rep. Moulton, Seth [D-MA-6]

    MA • D

    Sponsored 3/4/2026

  • Mullin

    CA • D

    Sponsored 3/4/2026

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

    DC • D

    Sponsored 3/4/2026

  • Ocasio-Cortez

    NY • D

    Sponsored 3/4/2026

  • Rep. Olszewski, Johnny [D-MD-2]

    MD • D

    Sponsored 3/4/2026

  • Rep. Omar, Ilhan [D-MN-5]

    MN • D

    Sponsored 3/4/2026

  • Pallone

    NJ • D

    Sponsored 3/4/2026

  • Pingree

    ME • D

    Sponsored 3/4/2026

  • Rep. Pressley, Ayanna [D-MA-7]

    MA • D

    Sponsored 3/4/2026

  • Rep. Quigley, Mike [D-IL-5]

    IL • D

    Sponsored 3/4/2026

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 3/4/2026

  • Randall

    WA • D

    Sponsored 3/4/2026

  • Rep. Raskin, Jamie [D-MD-8]

    MD • D

    Sponsored 3/4/2026

  • Rep. Salinas, Andrea [D-OR-6]

    OR • D

    Sponsored 3/4/2026

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 3/4/2026

  • Rep. Scanlon, Mary Gay [D-PA-5]

    PA • D

    Sponsored 3/4/2026

  • Schakowsky

    IL • D

    Sponsored 3/4/2026

  • Schrier

    WA • D

    Sponsored 3/4/2026

  • Scott (VA)

    VA • D

    Sponsored 3/4/2026

  • Scott, David

    GA • D

    Sponsored 3/4/2026

  • Simon

    CA • D

    Sponsored 3/4/2026

  • Smith (WA)

    WA • D

    Sponsored 3/4/2026

  • Soto

    FL • D

    Sponsored 3/4/2026

  • Stansbury

    NM • D

    Sponsored 3/4/2026

  • Swalwell

    CA • D

    Sponsored 3/4/2026

  • Rep. Takano, Mark [D-CA-39]

    CA • D

    Sponsored 3/4/2026

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 3/4/2026

  • Thompson (MS)

    MS • D

    Sponsored 3/4/2026

  • Rep. Titus, Dina [D-NV-1]

    NV • D

    Sponsored 3/4/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 3/4/2026

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 3/4/2026

  • Rep. Tonko, Paul [D-NY-20]

    NY • D

    Sponsored 3/4/2026

  • Trahan

    MA • D

    Sponsored 3/4/2026

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 3/4/2026

  • Rep. Torres, Ritchie [D-NY-15]

    NY • D

    Sponsored 3/4/2026

  • Rep. Vargas, Juan [D-CA-52]

    CA • D

    Sponsored 3/4/2026

  • Rep. Veasey, Marc A. [D-TX-33]

    TX • D

    Sponsored 3/4/2026

  • Rep. Velázquez, Nydia M. [D-NY-7]

    NY • D

    Sponsored 3/4/2026

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 3/4/2026

  • Rep. Walkinshaw, James R. [D-VA-11]

    VA • D

    Sponsored 3/4/2026

  • Rep. Wasserman Schultz, Debbie [D-FL-25]

    FL • D

    Sponsored 3/4/2026

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 3/4/2026

  • Rep. Williams, Nikema [D-GA-5]

    GA • D

    Sponsored 3/4/2026

  • Rep. DeSaulnier, Mark [D-CA-10]

    CA • D

    Sponsored 3/4/2026

  • Rep. Correa, J. Luis [D-CA-46]

    CA • D

    Sponsored 3/4/2026

  • Rep. Subramanyam, Suhas [D-VA-10]

    VA • D

    Sponsored 3/4/2026

  • Rep. Meng, Grace [D-NY-6]

    NY • D

    Sponsored 3/4/2026

  • Mrvan

    IN • D

    Sponsored 4/28/2026

  • Rep. Morrison, Kelly [D-MN-3]

    MN • D

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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