I 
109TH CONGRESS 
2D SESSION 
H. R. 6327 
To make certain management reforms to the Free File program of the 
Internal Revenue Service. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 15, 2006 
Ms. ZOE LOFGREN of California (for herself and Ms. ESHOO) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To make certain management reforms to the Free File 
program of the Internal Revenue Service. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Free File Reform Act 
of 2006’’. 
SEC. 2. FREE FILE PROGRAM. 
(a) FINDING.—The Congress finds that it is impor-
tant to make certain management reforms to the Free File 
program in order to ensure that the Free File program 
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operates in an optimal manner to assist those taxpayers 
least able to afford electronically filing their returns of tax. 
(b) MANAGEMENT REFORMS.— 
(1) AVAILABILITY OF PROGRAM.—For all re-
turns of tax filed for taxable year 2006 and for sub-
sequent taxable years during which the Free File 
program is in effect, the Commissioner of Internal 
Revenue shall ensure, through the range of free 
services presented through the Free File program, 
that such services are made available to all tax-
payers eligible for the program in accordance with 
the Agreement between the Free File Alliance and 
the Internal Revenue Service, effective October 30, 
2005, in particular those taxpayers eligible for the 
earned income credit under section 32 of the Inter-
nal Revenue Code of 1986 and other lower income, 
disadvantaged, and underserved taxpayers. 
(2) REQUIREMENTS FOR PARTICIPATING COM-
PANIES.—The Commissioner of Internal Revenue 
shall also ensure that, in connection with a tax-
payer’s participation in the Free File program 
through a website of the Internal Revenue Service, 
each participating company in the Free File pro-
gram— 
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(A) does not market, advertise in any way, 
or offer to sell products or services of any kind 
during the preparation of a taxpayer’s tax re-
turns through the Free File program, 
(B) does not use information derived from 
the content of the taxpayer’s tax returns to ad-
vertise, market, or sell products or services of 
any kind to the taxpayer after the taxpayer 
uses the Free File program, 
(C) offers only individual electronic tax 
preparation and filing services that are com-
mercial services (as defined in subparagraph 
(F) of the definition of the term ‘‘commercial 
item’’ in section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12)), 
(D) in addition to other requirements of 
law, makes available its privacy policy to each 
participating taxpayer through the website of 
the Internal Revenue Service, including— 
(i) its privacy policy concerning tax 
return information obtained from such tax-
payer, and 
(ii) that no selling, renting or trading 
of such tax return information is per-
mitted, and 
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(E) meets at least the minimum require-
ments for a responsible source (as defined in 
section 4(7) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(7)) that would 
be used by the Government to evaluate each 
such company if such company were being con-
sidered as a source for the provision of commer-
cial services under a contract with the Govern-
ment. 
(c) ASSISTANCE TO STATE E-FILING.—The Commis-
sioner of Internal Revenue shall also ensure that the Free 
File program assists State electronic filing objectives and 
programs by encouraging participating companies in the 
Free File program to voluntarily provide both Federal and 
State return preparation services free to eligible taxpayers 
residing in States with State Free File Alliances. 
(d) FREE FILE PROGRAM DEFINED.—For purposes 
of this section, the term ‘‘Free File program’’ means the 
program established by the Internal Revenue Service to 
provide certain taxpayers with the opportunity to elec-
tronically file their returns of income tax free of charge. 
Æ 
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