,,ii #aagth ,,congress #b;d ,session ,s4 #dejh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ab1 #bjbb,ms4 ,warren 7for herself1 ,mrs4 ,shaheen1 ,mr4 ,whitehouse1 ,ms4 ,baldwin1 ,mr4 ,sanders1 ,mr4 ,blumenthal1 ,mr4 ,markey1 ,ms4 ,duckworth1 ,ms4 ,hassan1 ,mr4 ,merkley1 ,mr4 ,booker1 ,mr4 ,leahy1 ,mr4 ,padilla1 ,mrs4 ,feinstein1 ,mrs4 ,gillibrand1 ,mr4 ,schatz1 ,mr4 ,kaine1 ,ms4 ,smith1 ,ms4 ,klobuchar1 ,mr4 ,casey1 ,ms4 ,stabenow1 ,mr4 ,king1 and ,ms4 ,hirono7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish a free on-line tax preparation and filing service and programs that allow taxpayers to access third-party provided tax return information and information held by the ,internal ,revenue ,service4 #a4 ,short title ,this ,act may be cited as the ,tax ,filing ,simplification ,act of #bjbb4 #b4 ,prohibition on agreements restricting ,government tax preparation and filing services ,the ,secretary of the ,treasury1 or the ,secretary's delegate1 may not enter into any agreement after the date of the enactment of this ,act which restricts the ,secretary's legal right to provide tax return preparation services or software or to provide tax return filing services4 #c4 ,government-assisted tax preparation and filing services 7a7 ,in general ,chapter #gg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #geca4 ,government-assisted tax-return preparation programs 7a7 ,establishment of programs ,the ,secretary shall establish and operate the following programs3 7#a7 ,simplified tax benefits portal for non-filers ,not later than ,march #a1 #bjbc1 a program through which any eligible taxpayer 7as defined in subsection 7b77#a77 can claim any credit allowed under subpart ,c of part ,,iv of subchapter ,a of chapter #a 7including the earned income tax credit under section #cb and the portion of the child tax credit allowed under section #bd7;d77 for the taxable year without being required to report any additional income data to the ,internal ,revenue ,service4 7#b7 ,online tax preparation and filing software ,not later than ,january #ca1 #bjbd1 software for the preparation and filing of individual income tax returns for taxable years beginning after #bjbb4 7#c7 ,taxpayer data access ,not later than ,march #a1 #bjbd1 a program under which taxpayers may download third-party provided return information and ,,irs-held information relating to individual income tax returns for taxable years beginning after #bjbb4 7#d7 ,expedited tax filing ,not later than ,march #a1 #bjbd1 a program under which eligible individuals 7as defined in subsection 7e77#a77 may elect to have income tax returns for taxable years beginning after #bjbb prepared by the ,secretary4 7b7 ,simplified tax benefits portal for non-,filers 7#a7 ,eligible taxpayer 7,a7 ,in general ,for purposes of subsection 7a77#a71 the term eligible taxpayer means a taxpayer who is not required to file a return of tax for the taxable year4 7,b7 ,expansion to include populations other than non-filers ,at the discretion of the ,secretary1 with respect to any taxable year beginning after #bjbc1 the term eligible taxpayer may include taxpayers who are required to file a return of tax for the taxable year4 7#b7 ,requirements 7,a7 ,in general ,the program described in subsection 7a77#a7 shall-- 7i7 request no information other than that which-- 7,i7 is strictly required for purposes of determining the amount of any credit described in subsection 7a77#a71 and 7,,ii7 is not already contained in the records of the ,internal ,revenue ,service or to which the ,internal ,revenue ,service does not have access1 7ii7 be user-tested1 7iii7 use plain language and be made available in all languages for which translations are provided on the public website of the ,internal ,revenue ,service1 7iv7 be accessible on mobile devices1 7v7 conform to all guidelines under section #ejh of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid;d71 7vi7 be available for use by taxpayers throughout the calendar year1 7vii7 be displayed in a prominent position on the website of the ,internal ,revenue ,service1 7viii7 be advertised through direct mailings1 and 7ix7 provide real-time feedback to taxpayers using the program and1 in the case of a claim for any credit described in subsection 7a77#a7 which is not allowed to the taxpayer1 provide additional information to the taxpayer on subsequent actions with respect to such claim4 7,b7 ,exception ,subparagraph 7,a77i7 shall not apply with respect to any information relating to demographic characteristics which-- 7i7 is collected by the ,internal ,revenue ,service for the purposes of improving equity1 and 7ii7 is not required to be submitted by the taxpayer for purposes of using the program described in subsection 7a77#a74 7#c7 ,determination of credit amount 7,a7 ,in general ,for purposes of determining the amount of any credit described in subsection 7a77#a71 the ,secretary shall determine such amount based on-- 7i7 any information which the taxpayer elects to provide through the program described in such subsection1 and 7ii7 any information available to the ,internal ,revenue ,service at the time that the taxpayer is claiming such credit through the program described in such subsection4 7,b7 ,subsequent third-party information ,in the case of any third-party provided return information which is received by the ,secretary after any determination made under subparagraph 7,a7 with respect to a taxpayer1 if such information would have resulted in an increase in the amount of any credit described in subsection 7a77#a7 had it been included in the prior determination made under such subparagraph1 the ,secretary may make a payment to the taxpayer in an amount equal to the difference between-- 7i7 the amount determined under subparagraph 7,a7 with respect to such credit prior to receipt of such information1 and 7ii7 the amount that would have otherwise been determined under subparagraph 7,a7 if such subparagraph had been applied subsequent to the receipt of such information4 7c7 ,requirements for online tax preparation and filing software ,the software described in subsection 7a77#b7 shall-- 7#a7 satisfy the requirements described in subsection 7b77#b71 except that1 for purposes of subparagraph 7,a77i77,i7 of such subsection1 such subparagraph shall be applied by substituting the preparation and filing of an individual income tax return for determining the amount of any credit described in subsection 7a77#a71 and 7#b7 be compatible with the program described in subsection 7a77#a7 so as to permit a taxpayer to-- 7,a7 submit any required information once for use by both programs1 and 7,b7 based on such information1 be directed to the appropriate program4 7d7 ,requirements for ,taxpayer ,data ,access ,program ,return information under the program established under subsection 7a77#c7 shall be made available-- 7#a7 for any calendar year beginning after ,december #ca1 #bjbd1 not later than #ae days after the ,secretary receives such information1 and 7#b7 through a secure function that allows a taxpayer to download such information from the website of the ,internal ,revenue ,service in both a printable document file and in a computer-readable form suitable for use by automated tax preparation software4 7e7 ,expedited tax filing 7#a7 ,eligible individual ,for purposes of the program established under subsection 7a77#d7-- 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,c71 the term eligible individual means1 with respect to any taxable year1 any individual who-- 7i7 elects to participate in the program established under subsection 7a77#d71 7ii7 does not claim any deduction allowed under section #fb for purposes of determining adjusted gross income1 7iii7 claims the standard deduction under section #fc1 7iv7 does not file schedule ,c1 and 7v7 has no income other than income from-- 7,i7 wages 7as defined in section #cdja71 7,,ii7 interest1 or 7,,iii7 dividends4 7,b7 ,limitation on eligibility for tax year #bjbc ,with respect to any taxable year beginning in #bjbc1 the term eligible individual shall only include such populations of individuals described in subparagraph 7,a7 as is determined by the ,secretary4 7,c7 ,expansion of eligibility after tax year #bjbc 7i7 ,in general ,at the discretion of the ,secretary1 with respect to any taxable year beginning after #bjbc1 the term eligible individual may include populations of individuals who would not otherwise satisfy the requirements established under subparagraph 7,a74 7ii7 ,report ,not later than ,august #ca1 #bjbe1 the ,secretary shall submit a report to ,congress that contains recommendations for such legislative or administrative actions as the ,secretary determines necessary with respect to expanding the populations of individuals that may qualify as eligible individuals for purposes of the program established under subsection 7a77#d74 7#b7 ,return must be filed by individual ,no return prepared under the program established under subsection 7a77#d7 shall be treated as filed before the date such return is submitted by the taxpayer as provided under the rules of section #fjaa4 7#c7 ,interaction with software ,not later than ,march #a1 #bjbd1 the ,secretary shall provide for interaction between the software described in subsection 7a77#b7 and the program established under subsection 7a77#d7 such that an individual may elect to have their income tax return partially prepared by the ,secretary pursuant to such subsection 7based on such information as is available to the ,secretary7 and made available through the software described in subsection 7a77#b7 for the individual to complete and file4 7f7 ,verification of identity 7#a7 ,in general ,an individual shall not participate in any program described in subsection 7a7 or access any information under such a program unless such individual has verified their identity to the satisfaction of the ,secretary4 7#b7 ,accessibility ,for purposes of verifying the identity of any individual seeking to participate in any program described in subsection 7a7 or to access any information under any such program1 the ,secretary shall ensure that-- 7,a7 any verification procedures are accessible to a significant majority of taxpayers1 and 7,b7 for any taxpayer who cannot access or use such verification procedures1 a secondary verification procedure 7or multiple secondary verification procedures7 that is accessible by such taxpayer1 including in-person verification procedures4 7#c7 ,online verification ,not later than #c years after the date of enactment of this section1 the ,secretary shall ensure that any verification procedures established under this section are able to be used successfully by-- 7,a7 #gj percent of households in the ,united ,states1 and 7,b7 #hj percent of taxpayers who are eligible to claim the earned income tax credit under section #cb4 7#d7 ,study and report ,not later than #c years after the date of enactment of this section1 and annually thereafter1 the ,secretary shall conduct a study and make publicly available a report on the verification pass rates by taxpayers under this section1 with such information to be disaggregated by income levels and subpopulation groups1 including disadvantaged populations such as-- 7,a7 individuals without access to desktop or laptop computers1 7,b7 individuals without internet service at home1 7,c7 individuals without credit histories1 7,d7 individuals experiencing homelessness1 and 7,e7 individuals with limited ,english proficiency4 7g7 ,other definitions ,for purposes of this section-- 7#a7 ,,irs-held information ,the term ,,irs-held information means-- 7,a7 any information relating to payments made to a taxpayer with respect to any credit allowed under subpart ,c of part ,,iv of subchapter ,a of chapter #a1 and 7,b7 any other information1 as identified and determined appropriate by the ,secretary for the purposes of this section1 which-- 7i7 is contained in the records of the ,internal ,revenue ,service or to which the ,internal ,revenue ,service has access1 and 7ii7 is not third-party provided return information4 7#b7 ,third-party provided return information ,the term third-party provided return information means-- 7,a7 information reported to the ,secretary through an information return 7as defined in section #fgbd7;d77#a771 7,b7 information reported to the ,secretary pursuant to section #bcb of the ,social ,security ,act1 and 7,c7 such other information reported to the ,secretary as is determined appropriate by the ,secretary for purposes of-- 7i7 the program established under subsection 7a77#b71 and 7ii7 any determination described in subsection 7b77#c77;,b74 7h7 ,taxpayer responsibility ,nothing in this section shall be construed to absolve the taxpayer from full responsibility for the accuracy or completeness of their return of tax4 7i7 ,prohibition on fees ,no fee may be imposed on any taxpayer who participates in any program established under subsection 7a74 7j7 ,information provided for wage and self-employment income ,for purposes of subsection 7a77#c71 in the case of information relating to wages paid for any calendar year after #bjbb required to be provided to the ,commissioner of ,social ,security under section #bje7;c77#b77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7;c77#b77;,a771 the ,commissioner shall make such information available to the ,secretary not later than the ,february #ae of the calendar year following the calendar year to which such wages and self-employment income relate4 7k7 ,outreach campaign 7#a7 ,in general ,the ,secretary1 in coordination with local community-based organizations1 shall conduct an outreach campaign to-- 7,a7 provide information to the public regarding the programs and software described in subsection 7a71 and 7,b7 enroll individuals in the programs described in such subsection4 7#b7 ,methods ,with respect to the outreach campaign described in paragraph 7#a71 the ,secretary shall-- 7,a7 provide relevant information on the public website of the ,internal ,revenue ,service1 and 7,b7 send direct mailings to individuals who have been identified as not having filed a return of tax for the taxable year4 7l7 ,state income tax returns ,subject to any applicable requirements under section #fajc1 the ,secretary shall establish intergovernmental cooperative agreements with ,state and local governments to exchange taxpayer return information which is provided1 imputed1 calculated1 or used to make calculations under the programs described in subsection 7a7 for purposes of the administration of ,state and local tax laws and the preparation of ,state income tax returns4 4 7b7 ,filing deadline for information returns ,section #fjga7;b7 of such ,code is amended to read as follows3 7b7 ,information returns ,returns made under part ,,iii of this chapter shall be filed on or before ,january #ca of the year following the calendar year to which such returns relate4 ,section #fjha shall not apply to returns under such part ,,iii4 4 7c7 ,conforming amendment to ,social ,security ,act ,section #bje7;c77#b77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7;c77#b77;,a77 is amended by adding at the end the following new sentence3 ,for purposes of the preceding sentence1 the ,commissioner shall require that information relating to wages paid be provided to the ,secretary of the ,treasury not later than ,february #ae of the year following the calendar year to which such wages and self-employment income relate44 7d7 ,clerical amendment ,the table of sections for chapter #gg of such ,code is amended by adding at the end the following new item3 ,sec4 #geca4 ,government-assisted tax-return preparation programs4 4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to carry out the amendments made by this section such sums as may be necessary for each of fiscal years #bjbb through #bjbf4 7f7 ,effective date ,the amendments made by this section shall apply to returns for taxable years beginning after ,december #ca1 #bjba4