Bill > S96

This bill, known as the FAIR PREP Act of 2025, aims to restrict the Internal Revenue Service (IRS) from directly preparing tax returns for individuals. Specifically, the bill prohibits the Secretary of the Treasury from preparing any tax returns or claims for refund, with narrow exceptions. The legislation explicitly targets the IRS's proposed direct file electronic tax preparation service, preventing the agency from operating such a system. However, the bill allows for qualified return preparation programs and the existing IRS Free File Partnership to continue. The definition of "preparing" a tax return includes completing necessary forms, computing taxes, and filing returns. The bill does not prevent the IRS from providing fillable forms with automated calculation features or correcting mathematical errors. Additionally, the bill limits the Treasury Secretary's ability to award grants or enter into contracts for developing electronic tax preparation services without specific congressional authorization. The amendment will apply to returns filed 30 days after the Act's enactment, and the bill clarifies that it does not retroactively impact the IRS's previous tax preparation activities or create any definitive judgment about the agency's broader authority.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/96/all-info