H.R.451 - Fostering Autonomy in Independent Returns by Prohibiting Redundant and Extralegal Programs Act of 2025; FAIR PREP Act of 2025 (119th Congress)
Summary
H.R. 451, the FAIR PREP Act of 2025, aims to amend the Internal Revenue Code of 1986 to prohibit the Secretary of the Treasury from engaging in certain tax return preparation activities. The bill seeks to limit the Secretary's ability to offer direct e-file tax return systems, with exceptions for qualified return preparation programs and the IRS Free File Program. It also restricts the Secretary from awarding grants or contracts for the development of electronic tax preparation services without explicit congressional authorization.
Expected Effects
If enacted, H.R. 451 would restrict the IRS's ability to offer its own free direct e-file tax return system, potentially limiting options for taxpayers who prefer this service. Taxpayers might need to rely more on private tax preparation services or existing free file programs. The bill could also impact the future development and funding of government-operated electronic tax preparation services.
Potential Benefits
- Promotes the role of private sector tax preparation services.
- Prevents potential government overreach into tax preparation services.
- Reinforces congressional authority over government spending and program development.
- Ensures that existing free file programs remain available.
- May encourage innovation in the private sector for tax preparation services.
Most Benefited Areas:
Potential Disadvantages
- Limits options for taxpayers, particularly those who prefer a free, direct government-run service.
- Could disproportionately affect low-income taxpayers who rely on free services.
- May increase reliance on paid tax preparation services, potentially creating a financial burden for some.
- Could stifle innovation within the IRS for improving tax filing processes.
- May reduce the IRS's ability to provide direct assistance and guidance to taxpayers.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. By limiting the Secretary of the Treasury's ability to engage in certain activities without congressional authorization, the bill reinforces Congress's role in overseeing government actions and spending. The bill does not appear to infringe upon any specific individual rights or liberties outlined in the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).