Gillibrand, Colleagues Introduce Legislation To Guarantee Free, Easy Tax Filing For Americans

U.S. Senator Kirsten Gillibrand (D-NY) joined Senators Elizabeth Warren (D-MA), Chris Coons (D-DE), Ron Wyden (D-OR), and dozens of her Democratic colleagues 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. If fully implemented, Direct File was projected to lower costs and save families up to $23 billion annually in fees, time, and tax credits.

“Filing your taxes shouldn’t be a burden. But President Trump ended the highly successful Direct File program to side with powerful special interests over everyday Americans, making it harder and more expensive for working families to file their tax returns,” said Senator Gillibrand. “I’m proud to cosponsor the *Direct File Act to restore this free, easy option so Americans can file directly with the government. I look forward to working to lower tax burdens for New Yorkers and will fight hard to get this important legislation across the finish line.*”

“It’s a no-brainer: Americans should be able to file their taxes easily and for free. Donald Trump canceled Direct File after giant tax prep companies spent millions lobbying to protect their profits,”** said Senator Warren*. “We’re fighting to lower costs for families by bringing Direct File back and making it the law of the land.*”

“Direct File helped hundreds of thousands of American taxpayers file their taxes quickly, easily, and for free – so of course President Trump and Republicans killed it,” said Senator Coons. “This year, those Americans will have to go back to expensive tax preparation services owned by President Trump’s donors. This legislation would bring back Direct File, because tax season is already hard enough without having to pay a company to pay your taxes.”

“Trump and the Republicans shut down the IRS Direct File program because they’re bought and paid for by the tax software industry and don’t have a problem with middle-class taxpayers getting ripped off every spring,” said Senator Wyden. “This bill is a promise that Democrats are going to restore Direct File the next time we’re in charge of the IRS, and in the meantime, it’s a shame that the Trump administration is a threat to any public service that saves Americans time, hassle and money.”

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.

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.

Gillibrand, Warren, Coons, and Wyden were joined on the legislation by Senate Democratic Leader Chuck Schumer (D-NY) and Senators 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), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), 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), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Mark Warner (D-VA), Peter Welch (D-VT), and Sheldon Whitehouse (D-RI). Over 120 representatives introduced companion legislation in the U.S. House of Representatives.

Read the full text of the legislation here.