New legislation, the Autofill Act, would create a voluntary tax filing program that allows individuals to use a secure IRS website to download a prefilled tax form.
The tax form would be "automatically populated with information the IRS already collects from employers, the Social Security Administration and financial institutions," according to the bill's sponsor, Rep. Bill Foster, D-Ill.
The information from the populated forms would be available as both a printable document and a computer-readable file compatible with existing tax prep software, Foster said in a statement. The service would be available to taxpayers at all income levels.
"It's long past time to make the tax filing process more efficient and less expensive for the American people," Foster said. "There's no reason why we can't make it easier for taxpayers to access the information the IRS already has on file. This is a commonsense solution that will save people time and money, and help bring our tax filing process into the 21st century."
Not later than Feb. 15, 2027, and annually thereafter, the Treasury secretary would be required to provide on the website "a secure function that allows a taxpayer to download, as both a printable document file and in a form suitable for input to automatic tax preparation software, the 1040, 1040A, and 1040EZ forms that are populated with information with respect to the taxpayer," according to the bill's text.
The Autofill Act offers "a practical step toward improving accuracy in the tax system," Jeff Bush of The Washington Update said Wednesday in an email. "The IRS already spends a tremendous amount of time correcting avoidable errors — illegible handwriting, mismatched Social Security numbers, and incorrect addresses. Pre-populating forms with verified data helps reduce those mistakes at the front end."
Taxpayers with "more complex situations can still use traditional methods or seek professional advice," Bush added. "There's also a clear taxpayer benefit—fewer errors typically mean fewer notices, fewer processing delays, and a smoother overall filing experience."
The Autofill Act "supports progress made by the free Direct File system," which was piloted by the Biden administration but canceled by the Trump administration, Foster said.
The IRS under the Trump administration said it shuttered the program due to low uptake and cost issues. Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, countered in a statement released April 15 that intense lobbying by the tax preparation industry drove the decision.
Foster cites a Government Accountability Office report that found Direct File "to be a successful, no-cost alternative for taxpayers."
Direct File was a free service to help taxpayers prepare and file tax returns electronically. The IRS "piloted Direct File in 2024 for taxpayers with simple tax returns in 12 states," the report states, and it was made a permanent option starting in 2025. "Taxpayers said it was easier to prepare and file returns," GAO said.
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