Direct File Act of 2026
Sponsored By: Senator Warren, Elizabeth [D-MA]
Introduced
Summary
A federally owned online tax filing program would let taxpayers prepare and file individual income tax returns online and would block Treasury agreements that limit the government's ability to offer return-prep or filing services.
Show full summary
- Taxpayers would get a free, plain-language, mobile-accessible tool that uses IRS records to auto-fill returns, offers live chat help and multiple languages, and lets people file even when not otherwise required. For tax years beginning after 2027 at least 50% of taxpayers in participating States must be eligible, with eligibility expanding over time.
- States could choose to integrate state return filing with the federal tool or participate if they have no state income tax. Participating States can receive a $1,000,000 grant if their state filing functionality meets the program's standards.
- The bill would bar the Treasury Secretary from entering new agreements that restrict the Secretary's legal right to provide return preparation or filing services. Any existing agreement entered into before enactment would become void 30 days after enactment.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Free federal online tax filing
If enacted, the Treasury would build and run a free federal website to prepare and file individual income tax returns. You would be able to import IRS-held data into your return at your election, use an interview-style, mobile and multilingual interface, and get integrated help including live chat. The site would meet accessibility rules, let you file even if you are not otherwise required to file, and the IRS would report to Congress by August 31, 2027, and each year after on use and satisfaction. For returns for years after December 31, 2027, at least 50% of taxpayers in participating States would be eligible to use the program. Participating States that meet standards similar to the federal program could get a $1,000,000 grant, and Congress is authorized to provide such sums as may be necessary for fiscal years 2026 through 2035 to carry out the program.
Ban on agreements that limit IRS filing
If enacted, the Secretary of the Treasury would be barred from entering agreements that limit the Secretary's legal right to provide tax return preparation or filing services, require the Secretary not to provide such services, or condition an agreement on the Secretary not providing such services. Any agreement entered on or before enactment that does restrict those rights would be void 30 days after enactment. The provision defines 'Secretary' to include the Secretary's delegate.
Later deadlines for payor returns
If enacted, certain information returns that come with a written statement (other than nonemployee compensation) would be filed by the same date the written statement must be furnished. Other electronic information returns without a separate deadline would be due by March 31 of the year after the calendar year of the returns. These changes would apply for returns for taxable years beginning 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. 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
John Hickenlooper
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
Amy Klobuchar
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
Charles Schumer
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
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 2/26/2026
Peter Welch
VT • D
Sponsored 2/26/2026
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 2/26/2026
Roll Call Votes
No roll call votes available for this bill.
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