Details of Public Law 119-21, section 70607 , One Big Beautiful Bill Act

This provision appropriates $15 million dollars for the fiscal year ending on September 30, 2026, for necessary expenses of the Department of the Treasury to provide a report to Congress within ninety days of the passing of the Act, on the following:

The cost of improving and creating public/private partnerships to provide free tax filing for up to 70 percent of taxpayers, and the cost to replace any direct e-file programs currently provided by the Internal Revenue Service (IRS).

Opinions and preferences of the taxpayers of a taxpayer funded government-run service or a free service provided by private sector.

An evaluation of the feasibility of a new approach, to make consistent and simple options across all providers, that would address the needs of all taxpayers.

The cost of developing, running and administering a free direct e-file tax return system for various options of coverage to taxpayers based on their adjusted gross income and return complexity.

CalFile is the state’s free, online program for taxpayers to complete and e-file their personal income tax returns directly with California. In 2024, the IRS rolled out Direct File, which allowed taxpayers to file their 2023 federal tax return online, for free, and directly with the IRS. California partnered with the IRS during the pilot year, which allowed the Direct File tool to refer California taxpayers to the state’s stand-alone electronic tax return filing system, CalFile, to file their California tax return. The appropriations provided under this provision do not impact California’s CalFile program.