Overview
Title
To prohibit the Secretary of the Treasury from implementing or continuing a free, public electronic tax return-filing service option.
ELI5 AI
H. R. 9109 is a plan to stop a free website from the government that helps people do their taxes online. It doesn't say what to use instead, so some people might have a harder time doing their taxes for free.
Summary AI
H. R. 9109 aims to stop the Secretary of the Treasury from continuing or creating any government-run, free, public online tax filing service. Introduced by several representatives, the bill specifically seeks to prevent the continuation of the IRS's Direct File program, which allows taxpayers to file their taxes electronically at no cost. This piece of legislation is known as the "IRS Overreach Prevention Act."
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AnalysisAI
General Summary of the Bill
H.R. 9109, titled the "IRS Overreach Prevention Act," seeks to restrict the Secretary of the Treasury and the Internal Revenue Service (IRS) from implementing or maintaining a free, public electronic tax return-filing service, known as the Direct File program, or any similar successor program. The bill was introduced in the House of Representatives on July 23, 2024, and referred to the Committee on Ways and Means. The bill is presented as a measure to prevent what is perceived as an overreach by the IRS.
Summary of Significant Issues
The bill raises significant issues, particularly related to taxpayer access to free electronic tax filing options. Prohibiting the Direct File program without establishing alternative solutions can limit options for individuals who may not afford commercial tax preparation services, particularly low-income taxpayers. Furthermore, the bill does not provide a clear explanation or justification for discontinuing the program, leaving stakeholders without an understanding of its necessity or rationale.
Impacts on the Public
Broadly, this bill could impact the public by decreasing accessibility to free tax filing services offered directly through the IRS. This may lead to increased reliance on commercial services, which could be a financial burden, particularly for those unable to afford such services. The lack of a public option could lead to higher costs and potentially discourage timely or accurate tax filings due to these barriers.
Impacts on Specific Stakeholders
The legislation might negatively impact low-income individuals and families who depend on free services to file their taxes. Removing a cost-free option could result in increased financial strain during tax season, affecting their ability to comply with tax laws. On the other hand, commercial tax preparation companies might view this development positively, as it may increase demand for their services. However, this could also raise concerns about competition and fairness if citizens are left with fewer or more costly options.
In conclusion, while the bill intends to limit government involvement in tax preparation, it also inadvertently creates challenges for taxpayers, particularly those in financially vulnerable situations. Without clear alternatives or reasons, the prohibition of the IRS Direct File program could have unintended consequences that warrant careful consideration by lawmakers and stakeholders alike.
Issues
The prohibition of the Direct File program, as found in Section 2, limits taxpayer options for free electronic filing, potentially disadvantaging low-income individuals who rely on such services, raising equity and access concerns.
Section 2 introduces ambiguity by failing to specify alternative solutions or programs to replace the Direct File program, leaving uncertainty on how taxpayers will access free electronic filing services.
The rationale behind prohibiting the Direct File program is unclear in Section 2. This lack of explanation hinders the assessment of the necessity and justification of this legislative action.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill states that it can be called the "IRS Overreach Prevention Act."
2. Prohibition of free direct file programs Read Opens in new tab
Summary AI
The section prohibits the Treasury Secretary from continuing or creating any free electronic tax filing programs, banning the IRS from offering a public option.