Gallego, Over 150 Lawmakers Introduce Direct File Act to Guarantee Free, Easy Tax Filing for Americans

The Direct File Act would reverse the Trump administration’s decision to cancel Direct File, building on widely successful pilot
WASHINGTON – Senator Ruben Gallego (D-AZ)joined over 150 lawmakers in introducing theDirect File Actto reinstate and permanently codify the highly successful Direct File program which allowed taxpayers to file their taxes online, for free, and directly with the government. The program was canceled by President Trump last year.
“Working families shouldn’t have to pay a preparing company or jump through hoops just to file their taxes,”said Senator Gallego.“The Direct File program cuts the red tape so families don’t have to worry about the tax maze. That’s why I’m backing this bill to make tax filing as straightforward as it should be for Americans.”
The average American taxpayer spendseight hours and $160 each yearfiling their taxes with tax prep companies. In 2024, the IRS launched Direct File to save families time and money. 94% of users described their experience as “excellent” or “above average,” and more than 70% of taxpayers said they would use Direct File if they were eligible. If fully implemented, Direct File was projected to save families up to$23 billionannually in fees, time, and tax credits.
Despite Direct File’s success, the Trump Administration ended the program after extensive lobbying efforts by tax prep companies. This decision contradicts recommendations from the independentGovernment Accountability OfficeandTreasury Inspector General for Tax Administration, ultimately raising costs for Americans and making the tax filing experience even more burdensome.
In addition to directing the IRS to establish and operate a free online tax preparation and filing program, theDirect File Actwould:
TheDirect File Actwas led bySenator Elizabeth Warren (D-MA)andRep. Brad Sherman (CA-32)and has been endorsed by 115 unions, advocacy groups, and national organizations.
Full text of the legislation can be foundHERE.