Press Releases

WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) joined over 150 lawmakers in introducing the Direct File Act, new legislation that would reverse the Trump administration’s decision to end the highly successful Direct File program — which allowed taxpayers to file their taxes online, for free, and directly with the government — and make the program permanent.

“Virginians should be able to file their taxes, quickly, easily, and for free,” said the senators. “The Trump administration’s senseless decision to end the Direct File program cost taxpayers billions of dollars. This bill would fully restore the program and make it permanent so that every year Americans have a reliable, hassle-free way to file their taxes.”

The average American taxpayer spends eight hours and $160 each year filing 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 billion annually 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 independent Government Accountability Office and Treasury 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, the Direct File Act would: 

  • Prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services.
  • Direct the IRS to publish an annual report on use levels, patterns of usage, and ways to improve access to Direct File.
  • Direct the IRS to enable seamless integration between state tax filing systems and Direct File, including through information sharing and a new grant program for states.
  • Reduce tax fraud by getting third-party income information to the IRS earlier in the tax season, allowing the agency to verify this information before issuing refunds.

In addition to Warner and Kaine, 38 other senators sponsored this legislation, including U.S. Sens. Elizabeth Warren (D-MA), Angela Alsobrooks (D-MD), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Maria Cantwell (D-WA), Chris Coons (D-DE), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Mark Kelly (D-AZ), Andy Kim (D-NJ), Angus King (I-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Patty Murray (D-WA), Alex Padilla (D-CA), Jack Reed (D-RI), Bernie Sanders (I-VT), Brian Schatz (D-HI), Adam Schiff (D-CA), Chuck Schumer (D-NY), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Peter Welch (D-VT), and Ron Wyden (D-OR).

120 Members of the House of Representatives sponsored the bill as well.

The bill is endorsed by 115 unions, advocacy groups, and national organizations, including Public Citizen, Americans for Tax Fairness, Economic Security Project Action, Groundwork Collaborative, AFL-CIO, American Federation of Teachers (AFT), American Federation of State, County and Municipal Employees (AFSCME), Service Employees International Union (SEIU), Communications Workers of America, Americans for Financial Reform, National Consumer Law Center (on behalf of its low-income clients), Center for Law and Social Policy (CLASP), Main Street Alliance, Institute on Taxation and Economic Policy, P Street, Patriotic Millionaires, Institute for Policy Studies - Program on Inequality, MoveOn, UnidosUS, 20/20 Vision, Advancing CT Together, Alliance for Retired Americans, Allons Babies, Americans for Democratic Action (ADA), Arkansas Asset Builders, Brazilian Worker Center Inc, California Alliance of Caregivers, CASH Campaign of Maryland, Catalyst Miami, Center for New Revenue, Center for the Study of Social Policy, Children's HealthWatch, Church Women United in New York State, Coalition on Human Needs, Color Of Change, Colorado Consumer Health Initiative, Colorado Fiscal Institute, Community Change Action, Connecticut Voices for Children, Consumer Action, Courage California, Demand Progress, Elevate Idaho Families, End Child Poverty CA powered by GRACE, Fair Share America, Faith in Minnesota, Financial Empowerment Network, Futures Without Violence, Garrett County Community Action Committee, Inc., Golden State Opportunity, Grow Brooklyn, Hawaii Children's Action Network Speaks!, Housing Action Illinois, Idaho Center for Fiscal Policy, In the Public Interest, Income Movement, Indivisible Georgia Coalition, ISAIAH (MN), Jobs with Justice, LIFT Inc, LIFT-DC, Maine Center for Economic Policy, Maine Equal Justice, MakingChange, Inc, Marion County Commission on Youth (MCCOY), Maryland Center on Economic Policy, Maryland Volunteer Lawyers Service, Meals4Families, Minnesota Budget Project, Mothers Outreach Network, My Money Story, National Association of Social Workers, National Coalition for Asian Pacific American Community Development, National Committee to Preserve Social Security and Medicare, National Council of Jewish Women Los Angeles, National Organization for Women, National Rural Social Work Caucus, NETWORK Lobby for Catholic Social Justice, New Jersey Policy Perspective, New Mexico Voices for Children, Northern Santa Barbara County United Way, Northwest Progressive Institute, Oregon Center for Public Policy, Oxfam America, Prepare + Prosper, Prosperity Indiana, Public Good Law Center, RAISE Texas, Responsible Wealth, RESULTS, RESULTS DC/MD, RESULTS.org-Massachusetts, Rise Up WV, RootsAction, San Diego for Every Child, SiX Action, Social Work Grand Challenge to Reduce Extreme Economic Inequality, State Innovation Exchange, Strong Economy For All Coalition, The Arc of the United States, Touch Stones Financial Wellness Services, Unitarian Universalist Fellowship of Hidalgo County Texas, Unitarian Universalists for Social Justice, United for a Fair Economy, United for Respect, United Way of Frederick County, United Ways of the Pacific Northwest, Upper West Side Action Group, Vesta Prosperity, Voices for Progress, Washington Anti-Hunger & Nutrition Coalition, Washington State Budget and Policy Center, Women Employed, and Young Invincibles.

“A free, direct e-filing tax return system is a fundamental taxpayer right,” said Nina Olson, Executive Director of the Center for Taxpayer Rights and former National Taxpayer Advocate. “Just as the government designs and printed paper tax forms for years, so should it design and maintain a user-friendly electronic filing option for individual taxpayers.”

The full bill can be found here and a summary of the bill can be found here.

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