We have received text from H.R. 7806: Direct File Act of 2026. This bill was received on 2026-03-04, and currently has 121 cosponsors.
Here is a short summary of the bill:
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.
Representative Brad Sherman Bill Proposals
Here are some bills which have recently been proposed by Representative Brad Sherman:
- H.R.7806: Direct File Act of 2026
- H.R.7271: Evan Anzoo Memorial Act
- H.R.7192: Hands Off Greenland Act
- H.R.5159: Nationwide Right to Unionize Act
- H.R.4819: Click to Cancel Act of 2025
- H.R.4382: America’s Olympic and Paralympic Games Commemorative Coins Act
You can track bills proposed by Representative Brad Sherman on Quiver Quantitative's politician page for Sherman.
Representative Brad Sherman Stock Trading
We have data on up to $4.6M of trades from Representative Brad Sherman, which we parsed from STOCK Act filings.
You can track Representative Brad Sherman's stock trading on Quiver Quantitative's politician page for Sherman.
2026 California's 32nd Congressional District Election
There has been approximately $4,268,862 of spending in California's 32nd congressional district elections over the last two years, per our estimates.
The rating for this race is currently "Solid D".
You can track this election on our matchup page for the 2026 California's 32nd congressional district election.
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
