Last Minute Tax Prep Legislation

1. What would the Taxpayer First Act do?


It would prohibit the IRS from creating an online tax preparation system that would compete with TurboTax and H&R Block.

2. Who are the sponsors of this bill?


It is sponsored in the House by Democratic Rep. John Lewis (GA) and Republican Mike Kelly (PA), and in the Senate by Finance Committee Chair Chuck Grassley (R-IA) and Ron Wyden (D-OR).

3. Why are these Congressmen pushing for this bill?


This provision is a long-held priority of those tax preparers, who have spent massive sums of money ($6.6 million just last year) lobbying Congress to keep taxes complicated and prevent the IRS from simplifying the process.

4. Why would the IRS easily be able to compete with TurboTax and HR Block?








The IRS could prepare taxes automatically for the vast majority of Americans for whom it has all the required information.

5. What do countries in Europe do differently to help people file their taxes?



Countries like Denmark, Sweden, Estonia, Chile, and Spain already offer "pre-populated returns" to their citizens. The United Kingdom, Germany, and Japan have exact enough tax withholding procedures that most people don’t have to file income tax returns at all, whether pre-populated or not.

6. What reforms did both Barack Obama and Ronald Reagan propose regarding filing taxes?


They both supported return free- filing.

7. Why does anti-tax advocate Grover Norquist support the Taxpayer First Act?
 The anti-tax crusader vehemently opposes automatic filing on the grounds that it makes tax season insufficiently nightmarish, which might reduce people’s aversion to taxes and make it easier for politicians to pass tax increases