H.R. 7806: Direct File Act of 2026
The bill titled "Direct File Act of 2026" aims to amend the Internal Revenue Code to create and implement an online tax preparation and filing system operated by the federal government. Here’s a breakdown of the key provisions:
Prohibition on Agreements
The bill prohibits the Secretary of the Treasury from entering into agreements that would restrict the government’s ability to provide tax preparation and filing services. This means that existing agreements that limit these services will be void 30 days after the bill is enacted.
Establishment of Online Tax Preparation and Filing Program
The Secretary of the Treasury is required to establish a program that allows taxpayers to prepare and file their individual income tax returns online. This program must:
- Be owned by the Federal Government.
- Utilize data from the Internal Revenue Service (IRS) to simplify the filing process.
- Incorporate user-friendly, interview-based systems for data input.
- Be accessible in multiple languages and on mobile devices.
- Comply with accessibility standards under the Rehabilitation Act.
- Be prominently displayed on the IRS website and promoted through various media.
- Include integrated customer support options like live chat.
- Allow all taxpayers the option to file returns, regardless of whether they are required to do so or not.
Eligibility and Participation
For tax years starting after 2027, at least 50% of taxpayers in participating states must be eligible to use this program. A participating state is defined as one that either offers an integrated state tax return filing option with the program or does not impose a state income tax.
Reporting Requirements
The Secretary must provide annual reports to Congress detailing the usage of the program, including taxpayer satisfaction and identified barriers to use.
Taxpayer Responsibility
The bill clarifies that taxpayers remain responsible for the accuracy and completeness of their tax returns filed through this program.
No Fees for Usage
No fees can be charged to taxpayers for utilizing any service or program established under this act.
State Income Tax Returns
In addition to federal taxes, the program should allow residents of participating states to file their state or local income taxes seamlessly in conjunction with their federal returns. States that demonstrate compliance with similar standards for state return functionality may receive funding for this integration.
Funding and Implementation
The bill authorizes necessary appropriations to implement these amendments for the fiscal years 2026 through 2035, applying to tax returns for taxable years beginning after December 31, 2025.
Relevant Companies
- INTU (Intuit Inc.) - The company, known for its TurboTax software, may experience a negative impact on its business if the government provides tax preparation and filing services directly to consumers.
- HRB (H&R Block, Inc.) - Similar to Intuit, H&R Block could see a decline in demand for its tax preparation services if individuals have access to a free government-backed filing service.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
123 bill sponsors
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TrackBrad Sherman
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TrackAlma S. Adams
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TrackPete Aguilar
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TrackGabe Amo
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TrackBecca Balint
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TrackNanette Diaz Barragán
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TrackJoyce Beatty
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TrackDonald S. Beyer, Jr.
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TrackSuzanne Bonamici
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TrackJulia Brownley
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TrackAndré Carson
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TrackSean Casten
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TrackKathy Castor
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TrackSheila Cherfilus-McCormick
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TrackJudy Chu
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TrackGilbert Ray Cisneros, Jr.
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TrackYvette D. Clarke
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TrackSteve Cohen
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TrackHerbert Conaway
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TrackJ. Luis Correa
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TrackJim Costa
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TrackDanny K. Davis
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TrackDiana DeGette
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TrackRosa L. DeLauro
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TrackMark DeSaulnier
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TrackMadeleine Dean
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TrackSuzan K. DelBene
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TrackChristopher R. Deluzio
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TrackMaxine Dexter
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TrackLloyd Doggett
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TrackSarah Elfreth
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TrackCleo Fields
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TrackLizzie Fletcher
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TrackBill Foster
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TrackValerie P. Foushee
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TrackLois Frankel
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TrackLaura Friedman
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TrackMaxwell Frost
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TrackJohn Garamendi
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TrackSylvia R. Garcia
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TrackRobert Garcia
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TrackJesús G. "Chuy" García
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TrackDaniel S. Goldman
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TrackJimmy Gomez
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TrackAl Green
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TrackJosh Harder
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TrackJahana Hayes
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TrackJames A. Himes
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TrackSteven Horsford
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TrackChrissy Houlahan
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TrackSteny H. Hoyer
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TrackJared Huffman
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TrackGlenn Ivey
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TrackSara Jacobs
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TrackPramila Jayapal
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TrackHenry C. "Hank" Johnson, Jr.
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TrackRobin L. Kelly
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TrackTimothy M. Kennedy
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TrackRo Khanna
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TrackGreg Landsman
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TrackRick Larsen
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TrackGeorge Latimer
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TrackSummer L. Lee
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TrackStephen F. Lynch
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TrackJohn Mannion
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TrackDoris O. Matsui
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TrackSarah McBride
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TrackApril McClain Delaney
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TrackJennifer L. McClellan
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TrackBetty McCollum
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TrackKristen McDonald Rivet
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TrackJames P. McGovern
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TrackLaMonica McIver
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TrackRobert Menendez
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TrackGrace Meng
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TrackKweisi Mfume
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TrackSeth Moulton
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TrackFrank J. Mrvan
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TrackKevin Mullin
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TrackEleanor Holmes Norton
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TrackAlexandria Ocasio-Cortez
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TrackJohnny Olszewski
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TrackIlhan Omar
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TrackFrank Pallone, Jr.
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TrackChellie Pingree
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TrackMark Pocan
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TrackAyanna Pressley
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TrackMike Quigley
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TrackDelia C. Ramirez
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TrackEmily Randall
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TrackJamie Raskin
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TrackAndrea Salinas
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TrackMary Gay Scanlon
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TrackJanice D. Schakowsky
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TrackKim Schrier
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TrackRobert C. "Bobby" Scott
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TrackDavid Scott
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TrackLateefah Simon
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TrackAdam Smith
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TrackDarren Soto
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TrackMelanie A. Stansbury
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TrackSuhas Subramanyam
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TrackThomas R. Suozzi
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TrackEric Swalwell
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TrackLinda T. Sánchez
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TrackMark Takano
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TrackShri Thanedar
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TrackBennie G. Thompson
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TrackDina Titus
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TrackRashida Tlaib
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TrackJill N. Tokuda
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TrackPaul Tonko
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TrackRitchie Torres
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TrackLori Trahan
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TrackJuan Vargas
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TrackMarc A. Veasey
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TrackNydia M. Velázquez
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TrackEugene Vindman
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TrackJames R. Walkinshaw
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TrackDebbie Wasserman Schultz
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TrackBonnie Watson Coleman
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TrackNikema Williams
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Tracknan
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Actions
2 actions
| Date | Action |
|---|---|
| Mar. 04, 2026 | Introduced in House |
| Mar. 04, 2026 | Referred to the House Committee on Ways and Means. |
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