Every year, tens of millions of taxpayers are legally required to file their taxes. It’s the law.

And every year, those same taxpayers spend billions of dollars with private companies to comply. 

But in 2024, the IRS launched Direct File — a free, public tax filing option that allowed taxpayers to file online, directly with the IRS. It worked. Families saved time and money. It was an overwhelmingly popular program and taxpayers found it simple and convenient. 

After heavy lobbying from tax prep corporations, the Trump Administration shut it down.

Now, the Direct File Act of 2026, led by Elizabeth Warren and Brad Sherman, would restore and strengthen Direct File — and make sure no future administration can quietly kill it again for corporate gain.

Why is this important?

The average taxpayer spends 8 hours and $160 every year to file their taxes through private companies. If fully implemented, Direct File was projected to save families up to $23 billion annually in fees, time, and missed credits.

Let’s be clear:

• Intuit made nearly $19 billion in 2025.
• H&R Block made nearly $4 billion last year.
• Over 70% of taxpayers are eligible to file for free.

So how did these corporations make billions? Unnecessary fees. Aggressive upselling. And monetizing taxpayer data.

For Black families in particular, tax refunds are often the closest thing to financial breathing room all year. Refunds help cover rent, childcare, debt, groceries, and emergencies. This is our hard-earned, over-withheld income.

What Does the Direct File Act Do?

The Direct File Act would reverse the Trump Administration’s decision and codify the Direct File program, building on the success of the Direct File pilot. 

In particular, the bill:

• Prohibit the IRS from entering into agreements that restrict free public tax filing services — and void any existing agreements that do.
• Codify a permanent, government-owned Direct File program.
• Allow the IRS to import income data into returns (with taxpayer consent) to simplify filing.
• Ensure at least 50% of taxpayers in participating states have access by 2028.
• Create grants to help states integrate their tax systems with Direct File.
• Require annual reporting on access and usage to improve the program.

Here is the Petition:

It is long past time for the tax industry to be held accountable for its deceitful practices that prey especially on low-income and Black communities.  

Companies like Intuit Turbo Tax and H&R Block have made billions of dollars preying on working-class people by inundating them with commercials, convincing them to use their services, and overcharging them. People of all races and economic backgrounds spend an outrageous amount of time, effort and money to file their tax returns. A staggering 70% of taxpayers qualify to file their taxes for free, and yet nearly no one does. The average taxpayer wastes more than 8 hours and roughly $200 just to prepare and file a return through private companies. For Black families in particular, tax refunds are often the closest thing to financial breathing room all year. Refunds help cover rent, childcare, debt, groceries, and emergencies. This is our hard-earned, over-withheld income.

Filing your taxes should not cost hundreds of dollars. Direct File is a straightforward program that simplifies tax filing by eliminating the middleman, with over 30 million taxpayers eligible to use it, according to the IRS. If fully implemented, Direct File was projected to save families up to $23 billion annually in fees, time, and missed credits.

The program was also overwhelmingly popular with taxpayers. 94% of Direct File 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.

We cannot allow predatory tax giants to succeed in killing this critical program for the American people to protect their bottom line. As a member of the Coalition for Free and Fair Filing, Color Of Change and its members join the call for the swift passage of the Direct File Act to restore free public tax filing for all!