II 109th CONGRESS 2d Session S. 2550 IN THE SENATE OF THE UNITED STATES April 5, 2006 Mr. Akaka (for himself and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide for direct access to electronic tax return filing, and for other purposes.

1.

Short title

This Act may be cited as the Free Internet Filing Act.

2.

Direct access to e-file Federal income tax returns

(a)

In general

The Secretary of the Treasury shall provide individual taxpayers with the ability to electronically file their Federal income tax returns through the Internal Revenue Service website without the use of an intermediary or with the use of an intermediary which is contracted by the Internal Revenue Service to provide free universal access for such filing (hereafter in this section referred to as the direct e-file program) for taxable years beginning after the date which is not later than 3 years after the date of the enactment of this Act. (b)

Development and operation of program

In providing for the development and operation of the direct e-file program, the Secretary of the Treasury shall— (1)consult with nonprofit organizations representing the interests of taxpayers as well as other private and nonprofit organizations and Federal, State, and local agencies as determined appropriate by the Secretary, (2)promulgate such regulations as necessary to administer such program, and (3)conduct a public information and consumer education campaign to encourage taxpayers to use the direct e-file program. (c)

Authorization of appropriations

There is authorized to be appropriated such sums as are necessary to carry out the direct e-file program. Any sums so appropriated shall remain available until expended. (d)

Reports to Congress

(1)

Report on implementation

The Secretary of the Treasury shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives every 6 months regarding the status of the implementation of the direct e-file program. (2)

Report on usage

The Secretary of the Treasury, in consultation with the National Taxpayer Advocate, shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives annually on taxpayer usage of the direct e-file program.