Direct File Act of 2026

This bill, known as the Direct File Act of 2026, would establish a government-run online system allowing taxpayers to prepare and file their individual income tax returns for free. The legislation prohibits the Treasury Department from entering into agreements that restrict its ability to provide tax preparation or filing services, and it voids any existing contracts with such restrictions. The program would use IRS data to simplify filing, include customer support, be available in multiple languages, and allow users to file even if they are not required to. It also enables taxpayers in participating states to file state and local returns alongside their federal returns, with funding provided to states that meet certain standards.