[Congressional Record Volume 152, Number 51 (Wednesday, May 3, 2006)]
[Senate]
[Page S3980]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        FREE INTERNET FILING ACT

  Mr. AKAKA. Mr. President, I continue to advocate for the ability of 
taxpayers to file their taxes directly through the Internal Revenue 
Service Web site without depending on commercial tax preparers. If a 
taxpayer has taken the time to fill out their taxes on their own, they 
should be provided with the opportunity to file electronically through 
the IRS Web site without exposing their personal financial information 
to a tax preparer or be subjected to solicitations for other services 
or tax products. A bill that I introduced with my friend from New 
Mexico, Senator Bingaman, S. 2550, the Free Internet Filing Act, 
requires that taxpayers be provided with the option to directly e-file 
via the IRS Web site without using commercial tax preparers. I will 
continue to work with my colleagues to enact this needed legislation. 
Electronic returns help taxpayers receive their refunds faster than 
mailing them in. This would also save the IRS resources and reduce 
possible errors that can occur when the mailed-in returns are 
transcribed.
  Mr. President, I ask unanimous consent that an additional letter of 
support for S. 2550 from the National Consumer Law Center, Consumer 
Federation of America, Consumers Union, U.S. Public Interest Research 
Group, and Consumer Action be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                   April 21, 2006.
     Hon. Daniel K. Akaka,
     U.S. Senate,
     Washington, DC.
       Dear Senator Akaka: The National Consumer Law Center (on 
     behalf of its low-income clients), Consumer Federation of 
     America, Consumers Union, the U.S. Public Interest Research 
     Group and Consumer Action write to support S. 2550, the 
     ``Free Internet Filing Act.'' Consumer groups have long 
     advocated for what S. 2550 would provide--the ability of 
     taxpayers to electronically file their returns without the 
     need for a third party intermediary.
       Enabling taxpayers to file electronically directly with the 
     Internal Revenue Service will benefit taxpayers tremendously. 
     It will save taxpayers the fees charged by some commercial 
     preparers for electronic filing. Unlike the current Free File 
     program established by the IRS, S. 2550 will provide 
     taxpayers with free electronic filing without being subject 
     to cross-marketing pitches for refund anticipation loans, 
     mortgages and other financial products which may not be in 
     their best interests.
       S. 2550 will also help taxpayers to keep their information 
     private. By allowing free direct electronic filing with the 
     IRS, taxpayers will have the ability to bypass commercial 
     preparers that might exploit or share their personal, 
     confidential tax information for non-tax purposes.
       We believe the IRS should have been required a long time 
     ago to establish free direct electronic filing. For many 
     years, Americans have been able to apply for federal student 
     financial aid on www.fafsa.ed.gov and Social Security 
     retirement benefits at www.ssa.gov. A free direct electronic 
     filing program at www.irs.gov is long overdue.
       If you have any questions about this letter, please contact 
     Chi Chi Wu. Thank you again for all your efforts to protect 
     taxpayer rights.
           Sincerely,
     Chi Chi Wu,
       Staff Attorney, National Consumer Law Center.
     Jean Ann Fox,
       Director of Consumer Protection, Consumer Federation of 
     America.
     Edmund Mierzwinski,
       Consumer Program Director, U.S. Public Interest Research 
     Group.
     Susanna Montezemolo,
       Policy Analyst, Consumers Union.
     Linda Sherry,
       Director, National Priorities, Consumer Action.

                          ____________________