H.R. 4267: Get Your Money Back Act

This bill, titled the Get Your Money Back Act, aims to ensure the continuation and implementation of a free online tax return filing system known as Direct File. Here are the key provisions:

Continuation of Direct File

The bill mandates that the Secretary of the Treasury, or an appointed delegate, must continue to provide the Direct File system for filing personal income tax returns. This system is designed to allow taxpayers to file their tax returns electronically at no cost.

Mandatory State Participation

Starting from the taxable year that begins after December 31, 2025, the bill requires all 50 states and the District of Columbia to participate in the Direct File system. This means that states must cooperate with the federal government in order to facilitate this free filing option for their residents.

Objectives of the Bill

• Provide a simplified and cost-effective method for taxpayers to file their taxes online.
• Promote greater accessibility to tax filing services, especially for those who may not have the means to use paid services.
• Encourage states to join the initiative to streamline the tax filing process at both state and federal levels.

Implications

The bill aims to reduce the burden of tax filing for individuals by making the process more straightforward and without cost. It reflects an effort to modernize tax systems and improve taxpayer experiences through technology.

Relevant Companies

• INTU - Intuit, the company behind TurboTax, may see a reduction in business as more taxpayers opt for the free Direct File system instead of paid tax filing options.
• HRB - H&R Block might be similarly impacted due to the availability of a free tax filing alternative for consumers.