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‘‘(C) with respect to whom such disability 
insurance benefit payments ceased to be pay-
able by reason of section 223(e)(1) of such Act. 
‘‘(3) 
QUALIFIED
BENEFIT
TERMINATION 
MONTH.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
benefit termination month’ means, with respect 
to any specified Purple Heart recipient, each 
month during the 12-month period beginning 
with the first month with respect to which dis-
ability insurance benefit payments described in 
paragraph (2)(B) ceased to be payable as de-
scribed in paragraph (2)(C). 
‘‘(B) EXCEPTION FOR MONTHS FOR WHICH 
BENEFITS ARE REINSTATED, ETC.—Such term 
shall not include any month if the specified 
Purple Heart recipient receives any benefit pay-
ment under section 223(a) of the Social Secu-
rity Act with respect to such month. 
‘‘(4) SSDI BENEFIT SUBSTITUTION AMOUNT.— 
For purposes of this subsection, the term ‘SSDI 
benefit substitution amount’ means, with respect to 
any specified Purple Heart recipient for any quali-
fied benefit termination month, an amount equal to 
the disability insurance benefit payment received by 
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such recipient under section 223(a) of the Social Se-
curity Act for the month immediately preceding the 
12-month period described in paragraph (3)(A). 
‘‘(5) CERTAIN EITC LIMITATIONS NOT APPLICA-
BLE.—Subsections (a)(2), (d), (e), (f), and (i) shall 
not apply with respect to the increase under para-
graph (1).’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years end-
ing after the date of the enactment of this Act. 
(d) SOCIAL SECURITY NUMBER DEFINED.— 
(1) IN GENERAL.—Section 32(m) is amended 
by striking ‘‘issued to an individual’’ and all that fol-
lows and inserting ‘‘(as defined section 24(h)(7))’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall apply to taxable years beginning 
after December 31, 2024. 
SEC. 112206. TASK FORCE ON THE TERMINATION OF DI-
RECT FILE. 
(a) TERMINATION OF DIRECT FILE.—As soon as 
practicable, and not later than 30 days after the date of 
the enactment of this Act, the Secretary of the Treasury 
shall ensure that the Internal Revenue Service Direct File 
program has been terminated. 
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(b) APPROPRIATION FOR TASK FORCE TO DESIGN A 
BETTER PUBLIC-PRIVATE PARTNERSHIP BETWEEN THE 
IRS AND PRIVATE SECTOR TAX PREPARATION SERVICES 
TO PROVIDE FOR FREE TAX FILING TO REPLACE THE 
EXISTING ‘‘FREE FILE’’ PROGRAM AND ANY ‘‘DIRECT 
EFILE’’ TAX RETURN SYSTEM.—Out of any money in the 
Treasury not otherwise appropriated, there is hereby ap-
propriated for the fiscal year ending September 30, 2026, 
for necessary expenses of the Department of the Treasury 
to deliver to Congress, within 90 days following the date 
of the enactment of this Act, a report on (1) the cost of 
a new public-private partnership to provide for free tax 
filing for up to 70 percent of all taxpayers calculated by 
adjusted gross income to replace free file and any IRS- 
run direct file programs; (2) taxpayer opinions and pref-
erences regarding a taxpayer-funded, government-run 
service or a free service provided by the private sector; 
(3) assessment of the feasibility of a new approach, how 
to make the options consistent and simple for taxpayers 
across all participating providers, how to provide features 
to address taxpayer needs; and (4) the cost (including op-
tions for differential coverage based on taxpayer adjusted 
gross income and return complexity) of developing and 
running a free direct efile tax return system, including 
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costs to build and administer each release, $15,000,000, 
to remain available until September 30, 2026. 
SEC. 112207. INCREASE IN PENALTIES FOR UNAUTHORIZED 
DISCLOSURES OF TAXPAYER INFORMATION. 
(a) IN GENERAL.—Paragraphs (1), (2), (3), (4), and 
(5) of section 7213(a) are each amended by striking 
‘‘$5,000, or imprisonment of not more than 5 years’’ and 
inserting ‘‘$250,000, or imprisonment of not more than 
10 years’’. 
(b) DISCLOSURES
OF RETURN INFORMATION
OF 
MULTIPLE TAXPAYERS TREATED AS MULTIPLE VIOLA-
TIONS.—Section 7213(a) is amended by adding at the end 
the following new paragraph: 
‘‘(6) DISCLOSURES OF RETURN INFORMATION 
OF MULTIPLE TAXPAYERS TREATED AS MULTIPLE 
VIOLATIONS.—For purposes of this subsection, a 
separate violation occurs with respect to each tax-
payer whose return or return information is dis-
closed in violation of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made after the date 
of the enactment of this Act. 
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SEC. 112208. RESTRICTION ON REGULATION OF CONTIN-
GENCY FEES WITH RESPECT TO TAX RE-
TURNS, ETC. 
The Secretary of the Treasury may not regulate, pro-
hibit, or restrict the use of a contingent fee in connection 
with tax returns, claims for refund, or documents in con-
nection with tax returns or claims for refund prepared on 
behalf of a taxpayer. 
Subtitle D—Increase in Debt Limit 
SEC. 113001. MODIFICATION OF LIMITATION ON THE PUB-
LIC DEBT. 
The limitation under section 3101(b) of title 31, 
United States Code, as most recently increased by section 
401(b) of Public Law 118–5 (31 U.S.C. 3101 note), is 
increased by $4,000,000,000,000. 
Passed the House of Representatives May 22 (legis-
lative day May 21), 2025. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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Calendar No. 107 
119TH CONGRESS 
1ST SESSION 
H. R. 1 
AN ACT 
To provide for reconciliation pursuant to title II of 
H. Con. Res. 14. 
JUNE 28, 2025 
Read the second time and placed on the calendar 
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