FAIR PREP Act of 2025

This bill would stop the IRS from preparing people’s tax returns or refund claims itself, including through the IRS’s own Direct File website. It makes clear that using an IRS-run “electronic tax preparation service” counts as the IRS preparing your return, so that option would end. The IRS could still support the Free File program and community volunteer tax help programs for eligible taxpayers, which may continue to help people prepare and file for free . The IRS could also keep offering fillable forms with basic calculator features and continue fixing simple math or clerical errors on returns. These changes would start 30 days after the bill becomes law.

For everyday taxpayers, this means if you used (or planned to use) IRS Direct File—which has been available to qualifying filers in 25 states—you would need to use private software, Free File if you qualify, or a local volunteer tax site instead. The Treasury would also be blocked from spending money on building or running any IRS-run tax-prep website or service unless a later law allows it.

• Who is affected: Taxpayers who used or planned to use IRS Direct File; the IRS; community tax help programs .
• What changes: No IRS-prepared returns; IRS Direct File ends; Free File and volunteer programs continue; fillable forms and simple error fixes remain; no new spending on IRS-run tax-prep tools without new law .
• When: Takes effect 30 days after enactment.