U.S. Senator Shelley Moore Capito, alongside 10 Senate Republican colleagues led by U.S. Senator Marsha Blackburn, has introduced the Fostering Autonomy in Independent Returns by Prohibiting Redundant and Extralegal Programs (FAIR PREP) Act. This proposed legislation aims to terminate the Internal Revenue Service’s (IRS) “Direct File” tax filing program, which was launched without congressional authorization.
Senator Capito expressed concerns about the program, stating, “Unfortunately, this program was a solution for a problem that doesn’t exist in a universe where free filing options are already available for millions of Americans.” She emphasized that funds used for this initiative should be redirected to address existing issues within the IRS.
The “Direct File” program, initiated by the Biden-Harris administration in 2024, saw participation from approximately 140,000 taxpayers—less than 1% of those eligible. Despite objections from congressional Republicans and Attorneys General from 13 states who labeled it as “unnecessary and unconstitutional,” the IRS plans to make it permanent. The agency estimates potential costs of up to $249 million annually.
A recent U.S. Government Accountability Office report highlighted resource reallocations within the IRS due to this program. The FAIR PREP Act seeks to amend Section 6020 of the Internal Revenue Code to explicitly prohibit unauthorized tax return preparations by the IRS and prevent circumvention through third-party contracts unless Congress authorizes them.
Companion legislation has been introduced in the House by Representatives Adrian Smith and Chuck Edwards.
