II 

116TH CONGRESS 

1ST SESSION S. 1194 

To amend the Internal Revenue Code of 1986 to establish a free on-line 

tax preparation and filing service and programs that allow taxpayers 

to access third-party provided tax return information. 

IN THE SENATE OF THE UNITED STATES 

APRIL 11, 2019 

Ms. WARREN (for herself, Mrs. SHAHEEN, Mr. WHITEHOUSE, Ms. BALDWIN, 

Mr. SANDERS, Mr. UDALL, Mr. MARKEY, Ms. DUCKWORTH, Ms. HASSAN, Mr. MERKLEY, Mr. BOOKER, and Mr. BLUMENTHAL) introduced 

the following bill; which was read twice and referred to the Committee 

on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a free on-line tax preparation and filing service and 

programs that allow taxpayers to access third-party provided tax return information. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Filing Simplifica5 tion Act of 2019’’. 


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1 SEC. 2. PROHIBITION ON AGREEMENTS RESTRICTING GOV2 ERNMENT TAX PREPARATION AND FILING 

3 SERVICES. 

4 The Secretary of the Treasury, or the Secretary’s del5 egate, may not enter into any agreement after the date 

6 of the enactment of this Act which restricts the Sec7 retary’s legal right to provide tax return preparation serv8 ices or software or to provide tax return filing services. 

9 SEC. 3. GOVERNMENT-ASSISTED TAX PREPARATION AND 

10 FILING SERVICES. 

11 (a) IN GENERAL.—Chapter 77 of the Internal Rev12 enue Code of 1986 is amended by adding at the end the 

13 following new section: 

14 ‘‘SEC. 7529. GOVERNMENT-ASSISTED TAX-RETURN PREPA15 RATION PROGRAMS. 

16 ‘‘(a) ESTABLISHMENT OF PROGRAMS.—The Sec17 retary shall establish and operate the following programs: 

18 ‘‘(1) ONLINE TAX PREPARATION AND FILING

19 SOFTWARE.—Not later than January 31, 2021, soft20 ware for the preparation and filing of individual in21 come tax returns for taxable years beginning after 

22 2019. 

23 ‘‘(2) TAXPAYER DATA ACCESS.—Not later than 

24 March 1, 2021, a program under which taxpayers 

25 may download third-party provided return informaVerDate Sep 11 2014 03:54 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 tion relating to individual income tax returns for 

2 taxable years beginning after 2019. 

3 ‘‘(3) TAX RETURN PREPARATION.—Not later 

4 than March 1, 2021, a program under which eligible 

5 individuals (as defined under subsection (c)(1)) may 

6 elect to have income tax returns for taxable years 

7 beginning after 2019 prepared by the Secretary. 

8 ‘‘(b) REQUIREMENTS FOR TAXPAYER DATA ACCESS

9 PROGRAM.— 

10 ‘‘(1) IN GENERAL.—Return information under 

11 the program established under subsection (a)(2) 

12 shall be made available— 

13 ‘‘(A) not later than 15 days after the Sec14 retary receives such information, and 

15 ‘‘(B) through a secure function that allows 

16 a taxpayer to download such information from 

17 the Secretary’s website in both a printable doc18 ument file and in a computer-readable form 

19 suitable for use by automated tax preparation 

20 software. 

21 ‘‘(2) THIRD-PARTY PROVIDED RETURN INFOR22 MATION DEFINED.—For purposes of this section, the 

23 term ‘third-party provided return information’ 

24 means— 


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1 ‘‘(A) information reported to the Secretary 

2 through an information return (as defined in 

3 section 6724(d)(1)), 

4 ‘‘(B) information reported to the Secretary 

5 pursuant to section 232 of the Social Security 

6 Act, and 

7 ‘‘(C) such other information reported to 

8 the Secretary as is determined appropriate by 

9 the Secretary for purposes of the program es10 tablished under subsection (a)(2). 

11 ‘‘(c) TAX RETURN PREPARATION.— 

12 ‘‘(1) ELIGIBLE INDIVIDUAL.—For purposes of 

13 the program established under subsection (a)(3)— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraphs (B) and (C), the term ‘eligible 

16 individual’ means, with respect to any taxable 

17 year, any individual who— 

18 ‘‘(i) elects to participate in the pro19 gram established under subsection (a)(3), 

20 ‘‘(ii) is an unmarried individual (other 

21 than a surviving spouse (as defined in sec22 tion 2(a)) or the head of a household (as 

23 defined in section 2(b))), 


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1 ‘‘(iii) does not claim any deduction al2 lowed under section 62 for purposes of de3 termining adjusted gross income, 

4 ‘‘(iv) claims the standard deduction 

5 under section 63, 

6 ‘‘(v) does not file schedule C, and 

7 ‘‘(vi) has no income other than income 

8 from— 

9 ‘‘(I) wages (as defined in section 

10 3401), 

11 ‘‘(II) interest, or 

12 ‘‘(III) dividends. 

13 ‘‘(B) LIMITATION ON ELIGIBILITY FOR

14 TAX YEAR 2020.—With respect to any taxable 

15 year beginning in 2020, the term ‘eligible indi16 vidual’ shall only include such populations of in17 dividuals described in subparagraph (A) as is 

18 determined by the Secretary. 

19 ‘‘(C) EXPANSION OF ELIGIBILITY AFTER

20 TAX YEAR 2020.— 

21 ‘‘(i) IN GENERAL.—At the discretion 

22 of the Secretary, with respect to any tax23 able year beginning after December 31, 

24 2020, the term ‘eligible individual’ may in25 clude populations of individuals who would 


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1 not otherwise satisfy the requirements es2 tablished under subparagraph (A), such as 

3 married individuals, heads of households, 

4 taxpayers who are eligible to claim the 

5 earned income tax credit under section 32 

6 and have dependents, taxpayers who are el7 igible to claim the child tax credit under 

8 section 24, taxpayers who claim deductions 

9 allowed under section 62 for purposes of 

10 determining adjusted gross income, and 

11 taxpayers with income from non-employee 

12 compensation. 

13 ‘‘(ii) REPORT.—Not later than August 

14 31, 2022, the Secretary shall submit a re15 port to Congress that contains recommen16 dations for such legislative or administra17 tive actions as the Secretary determines 

18 necessary with respect to expanding the 

19 populations of individuals that may qualify 

20 as eligible individuals for purposes of the 

21 program established under subsection 

22 (a)(3). 

23 ‘‘(2) RETURN MUST BE FILED BY INDI24 VIDUAL.—No return prepared under the program es25 tablished under subsection (a)(3) shall be treated as 


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1 filed before the date such return is submitted by the 

2 taxpayer as provided under the rules of section 

3 6011. 

4 ‘‘(d) VERIFICATION OF IDENTITY.— 

5 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

6 an individual shall not participate in any program 

7 described in subsection (a) or access any information 

8 under such a program unless such individual has 

9 verified their identity to the satisfaction of the Sec10 retary. 

11 ‘‘(2) PROHIBITION.— 

12 ‘‘(A) IN GENERAL.—For purposes of 

13 verifying the identity of any individual seeking 

14 to participate in any program described in sub15 section (a) or to access any information under 

16 such a program, the Secretary shall not employ 

17 any knowledge-based verification procedures. 

18 ‘‘(B) KNOWLEDGE-BASED VERIFICATION

19 PROCEDURE.—For purposes of this paragraph, 

20 the term ‘knowledge-based verification proce21 dure’ means any procedure for verification of 

22 the identity of an individual by means of asking 

23 detailed and personal questions for which only 

24 that individual is presumed to know the an25 swers, including any such procedures which are 


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1 provided through service agreements with a 

2 credit reporting agency. 

3 ‘‘(e) TAXPAYER RESPONSIBILITY.—Nothing in this 

4 section shall be construed to absolve the taxpayer from 

5 full responsibility for the accuracy or completeness of his 

6 return of tax. 

7 ‘‘(f) PROHIBITION ON FEES.—No fee may be im8 posed on any taxpayer who participates in any program 

9 established under subsection (a). 

10 ‘‘(g) INFORMATION PROVIDED FOR WAGE AND SELF11 EMPLOYMENT INCOME.—For purposes of subsection 

12 (a)(2), in the case of information relating to wages paid 

13 for any calendar year after 2019 required to be provided 

14 to the Commissioner of Social Security under section 

15 205(c)(2)(A) of the Social Security Act (42 U.S.C. 

16 405(c)(2)(A)), the Commissioner shall make such infor17 mation available to the Secretary not later than the Feb18 ruary 15 of the calendar year following the calendar year 

19 to which such wages and self-employment income relate.’’. 

20 (b) FILING DEADLINE FOR INFORMATION RE21 TURNS.—Section 6071(b) of such Code is amended to 

22 read as follows: 

23 ‘‘(b) INFORMATION RETURNS.—Returns made under 

24 part III of this chapter shall be filed on or before January 

25 31 of the year following the calendar year to which such 


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1 returns relate. Section 6081 shall not apply to returns 

2 under such part III.’’. 

3 (c) CONFORMING AMENDMENT TO SOCIAL SECURITY

4 ACT.—Section 205(c)(2)(A) of the Social Security Act (42 

5 U.S.C. 405(c)(2)(A)) is amended by adding at the end the 

6 following new sentence: ‘‘For purposes of the preceding 

7 sentence, the Commissioner shall require that information 

8 relating to wages paid be provided to the Secretary of the 

9 Treasury not later than February 15 of the year following 

10 the calendar year to which such wages and self-employ11 ment income relate.’’. 

12 (d) CLERICAL AMENDMENT.—The table of sections 

13 for chapter 77 of such Code is amended by adding at the 

14 end the following new item: 

‘‘Sec. 7529. Government-assisted tax-return preparation programs.’’. 

15 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out the amend17 ments made by this section such sums as may be necessary 

18 for each of fiscal years 2020 through 2024. 

19 (f) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to returns for taxable years begin21 ning after December 31, 2019. 

Æ 


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