Dems offer bill directing IRS to create free online tax filing service

A group of Democratic lawmakers announced Friday that they are reintroducing legislation in the House and Senate to instruct the IRS to create its own free, online tax-filing service.

The push comes days after some lawmakers expressed frustration with a bill passed by the House this week that would codify the IRS' partnership with tax-preparation software companies like H&R Block and Intuit, which makes TurboTax.

"Taxpayers waste too many hours and hundreds of dollars on tax preparation each year, which disproportionately burdens low-income and minority taxpayers," Sen. Elizabeth WarrenElizabeth Ann WarrenTim Ryan doesn't back impeachment proceedings against Trump Schiff: Democrats 'may' take up impeachment proceedings Trump claims Democrats' plans to probe admin will cost them 'big time' in 2020 MORE (D-Mass.), a lead sponsor of the Senate version of the bill, said in a statement. "This bill will require the IRS to offer easy, free, online tax-filing for all taxpayers."

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Warren offered the bill along with several other senators, including fellow presidential candidates Sens. Bernie SandersBernard (Bernie) SandersCory Booker has a problem in 2020: Kamala Harris Wage growth shaping up as key 2020 factor for Trump Booker to supporter who wanted him to punch Trump: 'Black guys like us, we don't get away with that' MORE (I-Vt.) and Cory BookerCory Anthony BookerCory Booker has a problem in 2020: Kamala Harris Booker to supporter who wanted him to punch Trump: 'Black guys like us, we don't get away with that' 2020 Dems ratchet up anti-corporate talk in bid to woo unions MORE (D-N.J.). In the House, the legislation is being reintroduced by Rep. Brad ShermanBradley (Brad) James ShermanHouse Dem: Mueller report offers 'ample evidence' for impeachment Dems offer bill directing IRS to create free online tax filing service Secrecy behind Saudi nuclear talks infuriates Congress MORE (D-Calif.), along with presidential candidate Rep. Tim RyanTimothy (Tim) John RyanTim Ryan doesn't back impeachment proceedings against Trump Cory Booker has a problem in 2020: Kamala Harris 2020 Dems ratchet up anti-corporate talk in bid to woo unions MORE (D-Ohio) and freshman Reps. Alexandria Ocasio-CortezAlexandria Ocasio-CortezMichael Steele: A missed opportunity at holding banks accountable House Dem dismisses impeachment push: 'I'd rather defeat' Trump at ballot box Tlaib rallies in support of Green New Deal at Detroit town hall MORE (D-N.Y.) and Katie HillKatherine (Katie) Lauren HillFreshman House Dems surge past GOP in money race Dems offer bill directing IRS to create free online tax filing service Liberals surprised by tax vote vow to kill 'Free File' provision MORE (D-Calif.).

The legislation, rolled out days before the April 15 tax-filing deadline, includes a number of provisions aimed at simplifying tax filing.

It would direct the IRS to create a free, online tax-preparation and filing service, and bar the agency from entering into agreements that would restrict its ability to offer such a service.

It also would allow taxpayers with simple situations to use a return-free option, under which they would receive a pre-prepared tax return.

To protect taxpayers' identities, the legislation would require taxpayers using a new filing option created by the IRS to verify their identities before accessing tax data.

The legislation has been introduced in past years as well, but may receive new attention this year due to controversy over a bipartisan IRS reform bill that passed the House this week.

The House-passed bill includes a provision to codify the IRS's "Free File" program — an agreement the IRS has in place with tax-prep companies for those companies to offer free software to low- and middle-income taxpayers. Under the current Free File program, the IRS agrees not to offer its own free filing service, though the IRS could terminate the agreement and offer its own service with 12 months' notice.

Some progressive lawmakers, including Hill and Ocasio-Cortez, criticized the Free File provision, arguing that it is the result of corporate influence by the tax-prep companies who want to prevent the IRS from creating its own filing service. Still, the IRS bill with the provision passed the House by voice vote. The measure also included a host of other provisions aimed at modernizing the IRS.

Leading sponsors of the Senate version of the IRS modernization bill dispute that the measure would bar the IRS from creating its own free filing service.