IRS gets a free tax-filing mandate; commercial prep firms lose captive market.
H.R. 4267 — Get Your Money Back Act · Filed by Emilia Sykes (D-OH) · 2 cosponsors · Introduced Jun 30, 2025 · Referred to committee
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What it does
This bill requires the Treasury Secretary to continue operating Direct File, a free IRS tax-filing system, and mandates all 50 states plus D.C. to participate in it starting in 2026. The bill aims to give taxpayers a free alternative to commercial tax-prep software, potentially saving millions in filing fees.
Why we flagged it
The bill's operative mechanism is a mandate to continue and expand a free public tax-filing service. It is straightforward consumer protection legislation that reduces private-sector rent-seeking in tax preparation.
What the text implies
- State participation mandate may require states to update IT infrastructure or coordinate with IRS systems, creating implementation costs borne by state budgets.
- Widespread adoption of Direct File could reduce revenue to commercial tax-prep firms (Intuit, H&R Block, etc.), potentially triggering industry lobbying against the bill or future appropriations cuts to IRS funding.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary taxpayers gain access to a free, government-provided tax-filing system, eliminating or reducing fees paid to commercial tax-prep companies. The mandate on states ensures nationwide availability and removes barriers to adoption.