Memphis Standard

U.S. Senators Marsha Blackburn, Steve Daines, Thom Tillis, Pete Ricketts, Jim Risch, Shelley Moore Capito, and Roger Marshall have introduced the FAIR PREP Act to dismantle the IRS's Direct File program. The legislation aims to end what they describe as an unauthorized tax filing initiative by the IRS under the Biden-Harris administration.

Senator Blackburn stated that "the IRS created an undeniable conflict of interest when it circumvented Congress to establish the Direct File program." Representative Adrian Smith criticized the IRS for its focus on "intruding on Americans’ financial privacy" rather than aiding them with tax complexities. He expressed gratitude to his colleagues for supporting this legislative effort.

Representative Chuck Edwards noted that the Direct File program had a low usage rate of less than 1% last tax season and argued that resources should be redirected towards improving customer service. Senator Daines labeled the program as "unnecessary and unconstitutional," while Senator Tillis emphasized its cost implications.

Senator Ricketts highlighted a conflict of interest in allowing the IRS to prepare and audit taxes without Congressional approval. Senator Risch reiterated concerns about costs and constitutionality, advocating for taxpayer autonomy. Senator Capito criticized the program as unnecessary given existing free filing options.

Senator Marshall called attention to national debt concerns, arguing against redundant programs like Direct File. Co-sponsors include Senators John Barrasso, Eric Schmitt, Bill Hagerty, Kevin Cramer and Representatives Andrew Garbarino, Claudia Tenney, Kevin Hern, Mark Alford, Vern Buchanan, Steve Womack, Beth Van Duyne, and Carol Miller.

The FAIR PREP Act seeks to amend Section 6020 of the Internal Revenue Code by prohibiting unauthorized tax return preparation by the IRS unless explicitly approved by Congress. It also prevents circumvention through third-party contracts or grants.

Endorsements come from Tennessee Attorney General Jonathan Skrmetti and organizations such as Americans for Tax Reform and Heritage Action. Grover Norquist of Americans for Tax Reform supported the bill stating it would prevent illegal power grabs by the IRS.

Ryan Walker from Heritage Action urged Congress to hold government agencies accountable. Brandon Arnold from National Taxpayers Union advocated for focusing on customer service improvements instead of costly duplicative services. David Williams from Taxpayers Protection Alliance emphasized transparency issues related to costs associated with Direct File.

Ryan Ellis from Center for a Free Economy warned against potential conflicts of interest in having the IRS involved in tax preparation.