Bill · H.R. 451· House(119-HR-451)
FAIR PREP Act of 2025
- Introduced
- 1/15/2025
- Last activity
- 1/15/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Adrian Smith
- Cosponsors
- - 29 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "FAIR PREP Act of 2025," aims to amend the Internal Revenue Code of 1986. It seeks to prohibit the Secretary of the Treasury from preparing tax returns or claims for refunds. The legislation specifically targets electronic tax preparation services operated by the Secretary. It includes specific exceptions for qualified return preparation programs and the IRS Free File Program. Additionally, the bill limits future expenditures for the development or operation of electronic tax preparation service options. These changes would take effect 30 days after the Act is enacted.
Yes
Does this reduce what the federal government spends?+3
The bill limits future expenditures for the development or operation of electronic tax preparation service options.
The opposite
Would households on low incomes be better off under this?-4
The bill prohibits the Secretary from operating free direct e-file electronic tax preparation services which are often used by low-income taxpayers.
Would middle-income households be better off under this?-2
The bill restricts access to government-operated electronic tax preparation services.
Would people in cities be better off under this?-2
The bill reduces access to government-operated electronic tax preparation services that may be utilized by urban populations.
Who it would affect, and how
Potential Positive Impacts for People
-
Protection of existing programs: The bill ensures that the prohibition does not apply to current "qualified return preparation programs" or the "IRS Free File Program," allowing these specific services to continue assisting taxpayers (Section 2(a)(3)).
-
Clarity on automated tools: The bill clarifies that the provision of fillable forms that include an "automated calculation feature" is not considered prohibited tax return preparation (Section 2(a)(4)(A)(ii)(I)).
Potential Negative Impacts for People
-
Restriction of electronic tax services: The bill would prohibit the Secretary from operating "any electronic tax preparation service" that is not part of the specific exceptions listed, such as the free direct e-file tax return system (Section 2(a)(2)).
-
Limitation on service development: The Secretary would be barred from awarding grants or entering into contracts for the "development or operation of an electronic tax preparation service option" unless authorized by law (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households-4Good For Middle Class Households-2Good For Urban Residents-2
- Economy And Finance
- Reduces Government Spending+3
- 12/3/2025
- 1 Cosponsor added.
- 4/7/2025
- 1 Cosponsor added.
- 4/2/2025
- 1 Cosponsor added.
- 3/25/2025
- 3 Cosponsors added.
- 3/3/2025
- 1 Cosponsor added.
- 2/25/2025
- 2 Cosponsors added.
- 2/24/2025
- 2 Cosponsors added.
- 2/21/2025
- 2 Cosponsors added.
- 2/13/2025
- 2 Cosponsors added.
- 2/4/2025
- 2 Cosponsors added.
- 1/31/2025
- 1 Cosponsor added.
- 1/28/2025
- 1 Cosponsor added.
- 1/15/2025
- Referred to the House Committee on Ways and Means.
- 10 Cosponsors added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mark AmodeiRepublican · Nevada
Rick AllenRepublican · Georgia
Mark AlfordRepublican · Missouri
Vern BuchananRepublican · Florida
Don BaconRepublican · Nebraska
Aaron BeanRepublican · Florida
Andrew ClydeRepublican · Georgia
Mike CareyRepublican · Ohio
Chuck EdwardsRepublican · North Carolina
Ron EstesRepublican · Kansas
Andrew GarbarinoRepublican · New York
Kevin HernRepublican · Oklahoma
David KustoffRepublican · Tennessee
Darin LaHoodRepublican · Illinois
Julia LetlowRepublican · Louisiana
Michael LawlerRepublican · New York
Nicole MalliotakisRepublican · New York
Daniel MeuserRepublican · Pennsylvania
Carol MillerRepublican · West Virginia
Gregory MurphyRepublican · North Carolina
Nathaniel MoranRepublican · Texas
W. SteubeRepublican · Florida
Keith SelfRepublican · Texas
Claudia TenneyRepublican · New York
William TimmonsRepublican · South Carolina
Beth Van DuyneRepublican · Texas
Steve WomackRepublican · Arkansas
Randy WeberRepublican · Texas
Rudy YakymRepublican · Indiana