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Democrats Introduce Direct File Act to Revive IRS’s Free Online Tax Filing

The bill aims to make Direct File permanent by prohibiting deals that curtail the service.

Overview

  • About 160 Democrats, including 40 senators and 120 House members, are backing the legislation unveiled by party leaders.
  • Lead sponsors include Sens. Elizabeth Warren, Chris Coons and Ron Wyden, alongside Reps. Brad Sherman, Don Beyer, Judy Chu, Steny Hoyer and Mark Pocan.
  • The measure would bar the Treasury from suppressing access, void agreements that restrict government tax filing, mandate annual usage reports and fund state integration.
  • Sponsors set a goal for the IRS to make Direct File available to at least 50% of taxpayers in participating states by the 2028 tax season.
  • The push follows the Trump administration’s termination of Direct File after the 2025 season, despite pilots in 2024 and 2025 that expanded to 25 states and drew high user satisfaction; sponsors also accuse Intuit of lobbying against the program.