119-hr451

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 451 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 451

 To amend the Internal Revenue Code of 1986 to prohibit certain 
activities constituting preparation of tax returns by the Secretary of 
 the Treasury, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 15, 2025

 Mr. Smith of Nebraska (for himself, Mr. Edwards, Mr. Garbarino, Mrs. 
Miller of West Virginia, Ms. Tenney, Mr. Hern of Oklahoma, Mr. Alford, 
Mr. Buchanan, Mr. Womack, Ms. Van Duyne, and Mr. Bacon) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to prohibit certain 
activities constituting preparation of tax returns by the Secretary of 
 the Treasury, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Fostering Autonomy in Independent 
Returns by Prohibiting Redundant and Extralegal Programs Act of 2025'' 
or the ``FAIR PREP Act of 2025''.

SEC. 2. PROHIBITION OF CERTAIN RETURN PREPARATION.

    (a) In General.--

Section 6020 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
 ``
            (c) Prohibited Preparation by Secretary.--
 ``

    (1) In general.--Except as provided in 

section 6014 and 
 subsections

    (a) and

    (b) of this section, the Secretary shall 
 not prepare any return of tax imposed by this title or any 
 claim for refund of tax imposed by this title.
 ``

    (2) Prohibition of direct file and comparable programs.--
 For purposes of paragraph

    (1) , any return or claim for refund 
 prepared using an electronic tax preparation service operated 
 by the Secretary shall be treated as if such return or claim 
 were prepared by the Secretary.
 ``

    (3) Qualified return preparation programs and irs free 
 file partnership.--Paragraph

    (2) shall not apply to any return 
 or claim for refund solely because such return or claim for 
 refund was prepared via, or with the assistance of--
 ``
        (A) a qualified return preparation program (as 
 defined in 

section 7526A

    (e) ), or
 ``
        (B) the IRS Free File Program as established by 
 the Internal Revenue Service and published in the 
 Federal Register on November 4, 2002 (67 Fed. Reg. 
 67247), including any subsequent agreements and 
 governing rules established pursuant thereto.
 ``

    (4) === Definitions. ===
-For purposes of this subsection--
 ``
        (A) Tax return preparation.--
 ``
            (i) In general.--The term `prepare' with 
 respect to any return or claim for refund 
 means--
 ``
            (I) the completion of any form 
 and schedule needed to compute and 
 report any tax imposed by this title or 
 any claim for refund of such a tax, and
 ``
            (II) the filing of any such 
 return or claim for refund, regardless 
 of whether such return or claim is 
 submitted electronically or on paper.
 For purposes of the preceding sentence, the 
 preparation of any portion of a return or claim 
 for refund shall be treated as if it were the 
 preparation of such return or claim for refund.
 ``
            (ii) Computation and correction of 
 errors, etc.--
 ``
            (I) In general.--Such term shall 
 not include any computation authorized 
 by 

section 6102 or any other 
 computation or correction of 
 mathematical or clerical errors 
 required or authorized by any provision 
 of chapter 63.
 ``
            (II) Fillable forms.--Such term 
 shall not include the provision of 
 fillable forms by the Secretary merely 
 because such forms include an automated 
 calculation feature.
 ``
        (B) Electronic tax preparation service.--The term 
 `electronic tax preparation service operated by the 
 Secretary' means the free direct e-file tax return 
 system as established by the Internal Revenue Service 
 and published in the Federal Register on December 15, 
 2023 (88 Fed. Reg. 87057), and September 5, 2024 (89 
 Fed. Reg. 72699), and any successor program of the 
 Internal Revenue Service which provides an electronic 
 tax preparation service option.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to returns filed after the date which is 30 days after the date of the 
enactment of this Act.
            (c) No Inference.--The amendment made by this section shall not be 
construed to create any inference with respect to the authority of the 
Secretary of the Treasury (or any delegate of such Secretary) to 
develop and offer for use any electronic tax filing or tax preparation 
service option, or otherwise engage in the preparation of any return of 
tax or any claim for refund of tax imposed by the Internal Revenue Code 
of 1986, with respect to any taxable year beginning on or before the 
date of the enactment of this Act.

SEC. 3. LIMITATION ON FURTHER EXPENDITURES CIRCUMVENTING CONGRESSIONAL 
 AUTHORITY.

 The Secretary of the Treasury (or any delegate of such Secretary) 
may not award or make payment of grants or enter into or maintain any 
contract, other transaction, or reimbursable agreement for the 
development or operation of an electronic tax preparation service 
option after the date of the enactment of this Act unless otherwise 
authorized by law.
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