Direct File Act of 2026

The Direct File Act of 2026 would amend the tax code to establish a free online tax preparation and filing system operated by the federal government. Under the bill, the Treasury Secretary would be required to create a program allowing taxpayers to prepare and file individual income tax returns online at no cost. The bill would also prohibit the Treasury Secretary from entering into agreements that restrict the government's ability to provide tax preparation and filing services, and would void any existing agreements that limit these services within 30 days of enactment. The bill would allow participating states to integrate their state and local income tax filing with the federal system and would authorize funding for the program through fiscal year 2035. This bill is currently under consideration by the House Committee on Ways and Means and has not yet been voted on by the full chamber.