Direct File Act of 2026

Simplified Tax Filing: The program will use data from Internal Revenue Service records to simplify the process by importing information directly into a taxpayer's return at their request (Section 3(a)(1)(B)).

Accessibility and Ease of Use: The system is designed to be user-tested, interview-based, available in multiple languages, and accessible on mobile devices (Section 3(a)(1)(C-E)).

Direct Support: Taxpayers can access integrated customer support, including live chat services, to get immediate help from the Internal Revenue Service (Section 3(a)(1)(J)).

No Cost to Use: The bill explicitly prohibits any fees from being charged to taxpayers for using the program (Section 3(a)(d)).

Integrated State Filing: For participating States, the program enables taxpayers to file state or local income tax returns seamlessly alongside their Federal returns (Section 3(a)(e)(1)).

State Funding: Participating States that meet certain standards for their tax return filing functionality can be eligible to receive $1,000,000 through a grant program (Section 3(a)(e)(2)).

Individual Responsibility: Despite the assistance provided by the program, taxpayers remain fully responsible for the accuracy and completeness of their tax returns (Section 3(a)(c)).

Eligibility Restrictions: Eligibility for the program is not universal; for taxable years after 2027, not less than 50 percent of taxpayers in participating States will be eligible, and the Secretary has discretion over who qualifies (Section 3(a)(2)(A-C)).

Geographic Limitations: The program's benefits regarding state tax integration are limited to "participating States," which are defined by specific criteria regarding state income tax or integrated functionality (Section 3(a)(2)(B)).