FAIR PREP Act of 2025
Sponsored By: Representative Rep. Smith, Adrian [R-NE-3]
Introduced
Summary
Prohibits the Secretary of the Treasury from preparing tax returns or refunds. It would also block new funding or contracts for IRS-run electronic tax preparation or "direct file" systems unless Congress explicitly authorizes them.
Show full summary
- Taxpayers: Removes the option of having the Treasury prepare a return or refund claim, so people who would have used an IRS-run free preparation tool would need private software or paid preparers instead.
- Tax preparers and software firms: Reduces potential competition from a government-run free filing option because the bill treats returns prepared by an IRS electronic service as prepared by the Secretary and bars those programs.
- IRS and program rules: Defines what counts as "tax return preparation," preserves certain narrow exemptions and automated tools like fillable forms, and would bar post-enactment spending or contracts to develop or operate IRS electronic preparation services unless Congress approves. The prohibition would apply to returns filed 30 days after enactment.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
No new IRS direct file funding
If enacted, the Treasury could not award grants or sign or pay new contracts or similar agreements to develop or run an IRS electronic tax preparation service after enactment. This would only be allowed if another law expressly authorizes it. This could limit future growth of free IRS filing options.
IRS could not prepare your tax return
If enacted, the IRS would be barred from preparing your tax return or refund claim. Any return made using an IRS-run electronic prep service would count as IRS-prepared for this ban. This would not apply to returns done through IRS Free File or a qualified volunteer return preparation program defined in law. The bill defines “prepare” to include filling out forms and filing, even if only part is completed. Routine math fixes and fillable forms with auto-calculations would not count as preparation. It would apply to returns filed starting 30 days after enactment and would cover the IRS Direct File system published on Dec. 15, 2023 and Sept. 5, 2024, and any successor.
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Sponsors & CoSponsors
Sponsor
Rep. Smith, Adrian [R-NE-3]
NE • R
Cosponsors
Edwards
NC • R
Sponsored 1/15/2025
Garbarino
NY • R
Sponsored 1/15/2025
Miller (WV)
WV • R
Sponsored 1/15/2025
Tenney
NY • R
Sponsored 1/15/2025
Hern (OK)
OK • R
Sponsored 1/15/2025
Rep. Alford, Mark [R-MO-4]
MO • R
Sponsored 1/15/2025
Buchanan
FL • R
Sponsored 1/15/2025
Womack
AR • R
Sponsored 1/15/2025
Van Duyne
TX • R
Sponsored 1/15/2025
Rep. Bacon, Don [R-NE-2]
NE • R
Sponsored 1/15/2025
Rep. Steube, W. Gregory [R-FL-17]
FL • R
Sponsored 1/28/2025
Malliotakis
NY • R
Sponsored 1/31/2025
Rep. Self, Keith [R-TX-3]
TX • R
Sponsored 2/4/2025
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 2/4/2025
Rep. Meuser, Daniel [R-PA-9]
PA • R
Sponsored 2/13/2025
Timmons
SC • R
Sponsored 2/13/2025
Rep. Weber, Randy K. Sr. [R-TX-14]
TX • R
Sponsored 2/21/2025
Allen
GA • R
Sponsored 2/21/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 2/24/2025
Kustoff
TN • R
Sponsored 2/24/2025
Rep. Murphy, Gregory F. [R-NC-3]
NC • R
Sponsored 2/25/2025
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 2/25/2025
LaHood
IL • R
Sponsored 3/3/2025
Amodei (NV)
NV • R
Sponsored 3/25/2025
Rep. Clyde, Andrew S. [R-GA-9]
GA • R
Sponsored 3/25/2025
Bean (FL)
FL • R
Sponsored 3/25/2025
Estes
KS • R
Sponsored 4/2/2025
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 4/7/2025
Rep. Letlow, Julia [R-LA-5]
LA • R
Sponsored 12/3/2025
Roll Call Votes
No roll call votes available for this bill.
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