A bill to amend the Internal Revenue Code of 1986 to codify the Direct File program.

# S 3948: Direct File Program Bill **What It Would Do** This bill would make the IRS's "Direct File" program a permanent part of federal tax law. Direct File is a free online tool that allows eligible taxpayers to prepare and file their federal income tax returns directly through the IRS, without using commercial tax preparation software or hiring a tax professional. Currently, the program operates as a pilot project; this bill would formally establish it in the tax code, giving it legal backing beyond temporary funding. **Who It Affects** The bill primarily benefits taxpayers with straightforward tax situations who are currently eligible for Direct File—generally those with simple income sources and standard deductions. It could reduce costs for millions of Americans who might otherwise pay tax preparation fees.

The IRS would gain permanent authority to operate and expand the program. Major commercial tax preparation companies, which currently dominate the tax filing market, could see reduced demand for their services. **Current Status** As of now, the bill is in committee, meaning it has been introduced but not yet voted on by the full Senate. It was sponsored by Senator Elizabeth Warren (D-MA). The bill has not advanced to a floor vote.