US SB3948

Codifies the IRS Direct File program into law, requiring the Treasury Secretary to establish and operate a free online system for taxpayers to prepare and file individual income tax returns

Prohibits the Treasury Secretary from entering any agreements that restrict the government's ability to provide tax preparation services or software, and voids existing such agreements within 30 days of enactment

Mandates that by taxable years beginning after 2027, at least 50% of taxpayers in participating states must be eligible to use Direct File, with continued expansion required thereafter

Requires the program to be federally owned, mobile-accessible, available in multiple languages, use an interview-based filing system, import IRS data automatically, and provide integrated live chat customer support at no cost to taxpayers

Establishes $1,000,000 grants for participating states that integrate state tax filing with the federal system, and authorizes appropriations for fiscal years 2026-2035