Get Your Money Back Act
Summary
H.R. 4267, the "Get Your Money Back Act," mandates the Secretary of the Treasury to continue implementing the IRS's Direct File system. This system allows taxpayers to file their taxes electronically for free. The bill further requires all 50 states and the District of Columbia to participate in the Direct File system starting after December 31, 2025.
Expected Effects
The bill aims to simplify tax filing and reduce the cost burden on taxpayers. It could lead to increased adoption of electronic filing and potentially reduce errors in tax returns. However, it could also create additional administrative burdens for states.
Potential Benefits
- Simplified Tax Filing: Direct File offers a free and potentially easier way for citizens to file taxes.
- Reduced Costs: Eliminates the need for paid tax preparation services for some filers.
- Increased Efficiency: E-filing can lead to faster processing and refunds.
- Greater Accessibility: Makes tax filing more accessible to individuals with limited resources.
- Potential Reduction in Errors: Direct filing systems may reduce errors compared to manual filing.
Potential Disadvantages
- State Administrative Burden: Mandating state participation could strain state resources.
- Potential for Technical Issues: Reliance on a digital system could create issues if the system fails.
- Limited Scope: Direct File may not accommodate all tax situations, requiring some to still use paid services.
- Privacy Concerns: Increased data collection raises potential privacy concerns.
- Potential for increased audits: Easier filing may lead to more scrutiny.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to provide a service to citizens that could improve their financial well-being. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, implying the power to administer the tax system efficiently. The mandate for state participation could raise concerns related to federalism and the Tenth Amendment, which reserves powers not delegated to the federal government to the states, although the taxing power is explicitly granted to Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).