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119-s-96119th CongressWALLET

FAIR PREP Act of 2025

Sponsored By: Senator Blackburn, Marsha [R-TN]

Introduced

Summary

This bill would prohibit the IRS from preparing federal tax returns or refund claims. It would remove the IRS’s Direct File-style preparation option, keep Free File and Volunteer Income Tax Assistance exceptions, and block Treasury-funded development of an IRS-run electronic tax-preparation service.

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  • Taxpayers who used the IRS Direct File portal in 25 participating states would lose that free way to prepare and e-file federal returns.
  • Low-income, disabled, and limited-English-proficiency taxpayers could still use third-party Free File software or local Volunteer Income Tax Assistance (VITA) help.
  • The Treasury would be barred from awarding grants or entering contracts to develop or operate an IRS electronic tax preparation service.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Ban on IRS free tax-prep service

This bill would bar the Treasury from preparing most tax returns or refund claims for returns filed more than 30 days after enactment. It would treat returns made with an IRS-run electronic tax-prep option as if the Secretary prepared them, which effectively blocks IRS direct‑file tools except for named programs. The bill would also stop federal grants, payments, contracts, or reimbursable agreements to develop or run an IRS electronic tax‑preparation option after enactment unless another law authorizes it. If enacted, people who would have used a free IRS tool could need to pay for commercial software or a paid preparer.

Sponsors & CoSponsors

Sponsor

Blackburn, Marsha [R-TN]

TN • R

Cosponsors

  • Sen. Daines, Steve [R-MT]

    MT • R

    Sponsored 1/15/2025

  • Sen. Tillis, Thomas [R-NC]

    NC • R

    Sponsored 1/15/2025

  • Sen. Barrasso, John [R-WY]

    WY • R

    Sponsored 1/15/2025

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 1/15/2025

  • Sen. Schmitt, Eric [R-MO]

    MO • R

    Sponsored 1/15/2025

  • Sen. Hagerty, Bill [R-TN]

    TN • R

    Sponsored 1/15/2025

  • Sen. Risch, James E. [R-ID]

    ID • R

    Sponsored 1/15/2025

  • Sen. Capito, Shelley Moore [R-WV]

    WV • R

    Sponsored 1/15/2025

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 1/15/2025

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 1/15/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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