Legislation would prohibit the IRS from implementing a “Return Free” tax filing scheme

WASHINGTON– Americans for Tax Reform today voiced its support for H.R. 5114, the “Tax
Return Choice Act of 2006”
that was introduced in the House by Rep. Melissa Hart (R-PA). This
legislation, introduced with a healthy 105 co-sponsors, will prohibit the Internal Revenue Service (IRS) from implementing a “Return Free” tax filing scheme.

In a “Return Free” tax model, the Internal Revenue Service (IRS) would automatically prepare the income tax returns of those taxpayers with the simplest returns, creating a conflict of interest as the tax collector becomes tax preparer. Intimidated taxpayers who do not challenge the government’s assessment would still be liable for errors in the government’s determinations.

“I thank Melissa Hart for her leadership in asking Congress to step in and prevent the IRS
from implementing a scheme that would deprive taxpayers of the protection offered by
voluntary compliance, an essential component in transparency for taxpayers,”
said taxpayer
advocate Grover Norquist, president of Americans for Tax Reform. “That 105 members of
Congress have already signed on to the bill is real evidence of just how misguided the IRS
would be in creating such a system.”

Americans for Tax Reform and other groups have weighed in the with IRS, the President’s
Advisory Panel on Federal Tax Reform, and President Bush in opposition to a Return Free system.