Illinois House Bill HB5919

Illinois 2023-2024 Regular Session

Caption

INC TX-PROHIBIT E-FILING FEES

Impact

By enforcing these provisions, HB5919 is expected to significantly alter the landscape of income tax preparation within Illinois. The bill proposes clear penalties for violations, establishing a civil penalty of $500 for the first infraction and escalating to $1,000 for subsequent violations. This framework is intended to discourage unethical pricing practices among tax service providers and to promote consumer rights, ultimately leading to greater compliance among tax preparers and software developers.

Summary

House Bill 5919, introduced by Rep. Janet Yang Rohr, aims to amend the Illinois Income Tax Act by prohibiting income tax return preparers and software companies from charging separate fees for electronic filing of tax returns. The bill would make it illegal for any tax software version to charge users specifically for its electronic filing capabilities. This legislative move seeks to ensure that all taxpayers have equitable access to tax filing resources without incurring additional costs for electronic submissions, which can deter some individuals from filing electronically.

Contention

Some contention may arise regarding the impact of this legislation on tax software companies and income tax preparers. While the intent is to eliminate extra fees for consumers, software companies may argue that such a restriction limits their ability to differentiate products and could adversely affect their profit margins. Additionally, there may be discussions regarding the implications of implementing such regulations on the overall market for tax preparation software and services, potentially leading to reduced innovation within the industry.