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Bill

HR 7806

Direct File Act of 2026

119th Congress Introduced by Alma Adams and 114 co-sponsors

Establishes IRS direct filing system allowing taxpayers to file federal taxes free without commercial software, reducing preparation costs and private-sector influence over tax policy.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 7806

Legislative bill overview

HR 7806, the Direct File Act of 2026, would establish a federal direct filing system allowing taxpayers to file their taxes directly with the IRS without using commercial tax preparation software. The bill aims to create a free, government-operated alternative to private tax filing platforms, potentially simplifying the tax filing process for eligible taxpayers and reducing compliance costs.

Why is this important

The IRS currently lacks a direct filing option, forcing most taxpayers to use paid commercial software or hire preparers. This bill addresses growing concerns about tax preparation costs, data privacy, and the lobbying influence of tax preparation companies that have historically opposed IRS modernization. A direct file system could reduce filing fees for low- to middle-income earners and give the government greater control over taxpayer data.

Potential points of contention

  • Tax preparation industry opposition: Companies like TurboTax and H&R Block have lobbied against IRS direct filing, citing competitive concerns and claims about government inefficiency
  • Implementation costs and complexity: Building and maintaining a secure federal system requires significant infrastructure investment and IT expertise; execution challenges could affect accuracy and reliability
  • Scope limitations: The bill may only serve simple returns, potentially excluding self-employed individuals, businesses, and those with complex deductions, leaving much of the market to private preparers

Compiled from official sources — confirm details with the bill’s official record.

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