Direct File Act of 2026 | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 7806Taxation

Direct File Act of 2026

INTRO MAR 4· LAST ACTION MAR 4

READING

8MIN

COSPONSORS

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LEGISLATIVE PROGRESS

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Passed Senate

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Became Law

WHAT THE BILL DOES

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Voters should care about this bill because it aims to make tax filing simpler and potentially free for many Americans. If it becomes law, it means that for certain taxpayers, preparing and submitting federal income taxes could become a no-cost process, removing the need to pay for commercial software or tax preparers. This could lead to significant savings for households, especially those with straightforward tax situations.

Without this bill, the Direct File program might remain a temporary initiative or face restrictions on its expansion. By making it permanent and voiding agreements that limit government-provided tax services, the bill ensures that the IRS maintains the right and responsibility to offer this free tool, potentially increasing competition in the tax preparation market and making government services more accessible and efficient for taxpayers.

KEY PROVISIONS

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PROVISION 01

Makes the IRS Direct File program a permanent service, allowing individuals to prepare and file federal income tax returns online for free.

This establishes a lasting, no-cost option for taxpayers to file their federal taxes directly with the government.

PROVISION 02

Voids any existing or future agreements that prevent the IRS from offering tax preparation and filing services to the public.

This eliminates barriers that might limit the government's ability to provide free tax filing options to its citizens.

PROVISION 03

Requires the Direct File program to be user-friendly, using IRS data to pre-fill returns, offering customer support, and being accessible in multiple languages and on mobile devices.

These requirements ensure the program is easy to use, widely available, and helpful for a diverse range of taxpayers.

PROVISION 04

Mandates that by tax year 2028, at least 50% of taxpayers in participating states (those without state income tax or those that integrate their state filing) must be eligible to use the program, with continuous expansion.

This provision ensures the program reaches a broad segment of the population, especially in states open to integrating with the federal system.

PROVISION 05

Enables the IRS to facilitate integrated state tax filing for taxpayers in participating states and offers a $1 million grant to states that integrate their state tax filing with Direct File.

This encourages states to join the federal program, potentially simplifying both federal and state tax filing for their residents.

SPONSORSHIP

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COSPONSOR BREAKDOWNBIPARTISAN · 0%

DEM 123 REP 0 IND 0

ACTION TIMELINE

2 EVENTS

MAR 4

Introduced in House

INTROREFERRAL

MAR 4

Referred to the House Committee on Ways and Means.

HOUSE · INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 7806

Congress119th

StatusIn Committee

IntroducedMar 4, 2026

Last actionMar 4, 2026

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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAR 4, 2026

House BillHR 7806Taxation

Direct File Act of 2026

INTRODUCED MAR 4, 2026· LAST ACTION MAR 4, 2026

PASSAGE CHANCES

—%

READING

8 min

COSPONSORS

123

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Makes the IRS Direct File program a permanent service, allowing individuals to prepare and file federal income tax returns online for free.

This establishes a lasting, no-cost option for taxpayers to file their federal taxes directly with the government.

high

Voids any existing or future agreements that prevent the IRS from offering tax preparation and filing services to the public.

This eliminates barriers that might limit the government's ability to provide free tax filing options to its citizens.

med

Requires the Direct File program to be user-friendly, using IRS data to pre-fill returns, offering customer support, and being accessible in multiple languages and on mobile devices.

These requirements ensure the program is easy to use, widely available, and helpful for a diverse range of taxpayers.

med

This provision ensures the program reaches a broad segment of the population, especially in states open to integrating with the federal system.

med

Enables the IRS to facilitate integrated state tax filing for taxpayers in participating states and offers a $1 million grant to states that integrate their state tax filing with Direct File.

This encourages states to join the federal program, potentially simplifying both federal and state tax filing for their residents.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

30 days after the date of enactment of this Act

Existing agreements restricting IRS services are voided

August 31, 2027

First annual report to Congress on Direct File program usage, satisfaction, and barriers

For any taxable years beginning after 2027

Not less than 50% of taxpayers residing in participating States must be eligible to use the program

FUNDING & AUTHORIZATIONS

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

AMOUNT	PROGRAM	TYPE	YEARS
$1,000,000	Grant program for participating States that integrate state tax return filing functionality with the Direct File program	mandatory	Not specified (per state, likely one-time or per integration effort)

GLOSSARY

AI-written

Codify: To write something into law, making it a permanent part of the legal code.
Direct File program: A system developed by the IRS that allows individual taxpayers to prepare and file their federal income tax returns directly with the government online, often for free.
Internal Revenue Code of 1986: The main body of federal tax law in the United States.
Secretary: Refers to the Secretary of the Treasury, who oversees the Internal Revenue Service, or someone acting on their behalf.
Participating State: A state that either does not have its own income tax or chooses to allow its state tax filing system to work together with the federal Direct File program.
Section 508 of the Rehabilitation Act of 1973: A federal law that requires government agencies to make their electronic and information technology accessible to people with disabilities.

ACTION TIMELINE

2 EVENTS

MAR 4

Introduced in House

INTROREFERRAL

MAR 4

Referred to the House Committee on Ways and Means.

INTROREFERRAL

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Direct File Act of 2026

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

READER REACTIONS

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Direct File Act of 2026

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

FUNDING & AUTHORIZATIONS

GLOSSARY

ACTION TIMELINE

SPONSORS

READER REACTIONS

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