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Bill

S 3948

Direct File Act of 2026

119th Congress Introduced by Angela Alsobrooks and 36 co-sponsors

Establishes direct IRS federal income tax filing system, eliminating need for commercial tax software and creating free government alternative for taxpayers.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3948

Legislative bill overview

The Direct File Act of 2026 would allow individual taxpayers to file their federal income taxes directly with the IRS without using commercial tax preparation software or services. The bill aims to establish a government-run tax filing system that would provide a free, simplified alternative to the current private tax preparation industry system.

Why is this important

Currently, most American taxpayers must use private tax software or hire preparers, creating significant annual costs for individuals and families. A direct IRS filing option could reduce taxpayer expenses, simplify the filing process, and increase the IRS's capacity to modernize its technology infrastructure while potentially improving tax compliance and revenue collection.

Potential points of contention

  • Tax preparation industry opposition: Commercial tax software companies and tax preparation firms would face reduced revenue and market share, likely generating significant lobbying against the bill
  • IRS resource requirements: Establishing and maintaining a direct filing system would require substantial upfront investment and ongoing funding for the IRS, raising questions about feasibility and cost-effectiveness
  • Complexity concerns: Critics may argue the IRS lacks adequate staffing and technology to handle direct filing at scale, potentially creating delays or errors; supporters counter that current private systems already process millions of returns

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

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