Direct File Act of 2026
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Summary
The Direct File Act of 2026 codifies a federal government tax preparation and filing program. The bill prohibits the IRS from entering into agreements that restrict its ability to provide free tax return preparation services and software, and voids any existing such agreements. It establishes a free, online tax filing program that uses IRS data to simplify filing, requires accessibility features and multilingual support, and mandates that at least 50 percent of taxpayers in participating states be eligible by 2028. The bill also allows states to integrate state income tax filing into the federal program and provides grants to participating states.
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