Bill > HR451

This bill prohibits the Internal Revenue Service (IRS) from directly preparing tax returns or operating a free direct e-file tax return system, with some specific exceptions. Under the proposed legislation, the Secretary of the Treasury cannot prepare tax returns, complete tax forms, or file returns on behalf of taxpayers, except in very limited circumstances such as preparing returns under specific existing programs like the IRS Free File Partnership or qualified return preparation programs. The bill defines "preparation" broadly to include both form completion and filing, but excludes certain mathematical error corrections and the provision of fillable forms with basic calculation features. The bill also restricts the Treasury Secretary from awarding grants or entering into contracts for developing electronic tax preparation services without specific legal authorization. Importantly, the bill does not prevent the IRS from providing tax forms or offering computational assistance, but aims to limit the agency's direct involvement in preparing individual tax returns. The provisions would take effect 30 days after the bill's enactment, and the legislation explicitly states that it should not be interpreted as creating any inference about the IRS's previous authority to develop tax preparation services before this bill's passage.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/451/all-info