SC Nebraska News

Congressman Adrian Smith, Congressman Chuck Edwards, and Senator Marsha Blackburn have introduced the FAIR PREP Act. This legislation seeks to halt the IRS from continuing its Direct File pilot program. The act builds on a previous bill by Smith and Edwards in 2024.

Rep. Smith criticized the IRS's focus on financial privacy intrusion over aiding taxpayers with complex tax codes. He stated, "This bill would protect Americans from further overreach and unnecessary audits while leaving existing free tax filing options intact."

Senator Blackburn expressed concern over the IRS's dual role as tax preparer and auditor, calling it a conflict of interest. She said, "This legislation would right this wrong by stopping the IRS from preparing tax returns without explicit legislative approval."

Rep. Edwards highlighted the low usage rate of less than 1% for the Direct File program last tax season, saying that resources should be directed towards better customer service instead.

The FAIR PREP Act aims to amend Section 6020 of the Internal Revenue Code to prohibit unauthorized IRS preparation of tax returns and prevent similar programs unless authorized by Congress.

Stakeholder groups such as Americans for Tax Reform and Heritage Action support this bill. Grover Norquist of Americans for Tax Reform remarked on the importance of congressional consent: "I applaud them for their leadership." Ryan Walker from Heritage Action emphasized holding government agencies accountable: "Heritage Action supports this common sense legislation."

Brandon Arnold from National Taxpayers Union supported terminating the Direct File program due to its cost implications. David Williams from Taxpayers Protection Alliance urged support for protecting taxpayers from IRS overreach.

Ryan Ellis from Center for a Free Economy highlighted a conflict of interest issue: "Getting the IRS into the tax preparation business is like getting the rooster into the hen house business."

Previously in January 2023, Reps. Smith and Michelle Steel introduced a bill to repeal an $80 billion IRS expansion which passed in Congress but did not become law.

Smith also led efforts in April and June 2024 urging defunding or raising concerns about expanding Direct File services.