House Republicans aren’t giving up on their bid to halt the IRS free electronic filing program, introducing legislation Tuesday that would halt its implementation.
The proposal, from Reps. Adrian Smith (R-Neb.) and Chuck Edwards (R-N.C.), explicitly prohibits the Treasury Department from continuing to develop or create new versions of its so-called Direct File program. With Democrats in control of the Senate, its chances are slim, though it might gain steam if Republicans take control of Washington after the November election.
Democrats and the Biden administration have touted the IRS free filing tool’s pilot as a success and made it permanent. The GOP and industry gave it negative reviews, calling it duplicative and arguing that the Democrat-led 2022 tax-and-climate law only allowed for a limited pilot.
Republicans—particularly members of the House Ways and Means Committee—have proposed ways to end Direct File, and the fiscal 2025 bill funding IRS zeroes out the money for the program. A House vote on its version of that bill was delayed until next week.
IRS announced plans to expand Direct File next tax filing season, and more states expressed interest in joining the program.
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