Bill · S. 96· Senate(119-S-96)
FAIR PREP Act of 2025
- Introduced
- 1/15/2025
- Last activity
- 1/15/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Marsha Blackburn
- Cosponsors
- - 10 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "FAIR PREP Act of 2025," seeks to amend the Internal Revenue Code of 1986. It aims 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 exceptions for qualified return preparation programs and the IRS Free File Program. Additionally, the bill limits the Secretary's ability to fund the development of electronic tax preparation options.
Yes
Does this reduce what the federal government spends?+5
The bill limits the Secretary's ability to fund the development or operation of electronic tax preparation services.
Does this make what the government does easier for the public to see?+1
The bill clarifies the definitions of tax return preparation and the scope of existing IRS programs.
The opposite· 3 of 4
Does this give the federal government more power?-5
The bill restricts the federal government's ability to operate and develop direct tax preparation services.
Would households on low incomes be better off under this?-4
The bill limits the development of free electronic tax preparation services which may be used by low-income taxpayers.
Would middle-income households be better off under this?-2
The prohibition on the Secretary's electronic tax preparation services may reduce accessibility for middle-income filers.
Who it would affect, and how
Potential Positive Impacts for People
-
Preservation of existing programs: The bill ensures that the IRS Free File Program and qualified return preparation programs remain available to the public, as these are explicitly excluded from the new prohibition (Section 2(a)(3)).
-
Clarification of automated tools: The bill clarifies that the Secretary providing fillable forms with automated calculation features does not constitute prohibited tax return preparation (Section 2(a)(4)(A)(ii)).
Potential Negative Impacts for People
-
Restriction of direct filing services: The bill would treat returns prepared using an electronic tax preparation service operated by the Secretary as if they were prepared by the Secretary, which could impact access to such services (Section 2(a)(2)).
-
Limitation on new electronic options: The Secretary of the Treasury is prohibited from awarding grants or entering into contracts for the development or operation of electronic tax preparation service options unless otherwise 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+5
- Governance And Ideology
- Improves Government Transparency+1Increases Federal Power-5
- 1/15/2025
- Read twice and referred to the Committee on Finance.
- 10 Cosponsors added.
- Introduced in Senate
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.
John BarrassoRepublican · Wyoming
Shelley CapitoRepublican · West Virginia
Kevin CramerRepublican · North Dakota
Steve DainesRepublican · Montana
Bill HagertyRepublican · Tennessee
Roger MarshallRepublican · Kansas
James RischRepublican · Idaho
Pete RickettsRepublican · Nebraska
Eric SchmittRepublican · Missouri
Thomas TillisRepublican · North Carolina