Prohibits tax preparation software companies from charging fee for electronically filing State tax returns.
Impact
If enacted, HB4789 could significantly impact the operations of tax preparation software companies in West Virginia. These companies, including popular platforms for individuals and businesses, would need to adjust their pricing structures in order to comply with the new restrictions. The bill may enhance the ability of taxpayers to file their returns without additional costs, potentially increasing the rates of electronic filings across the state. The legislation aligns with broader efforts to ensure that tax processes are not only simplified but also economically accessible for all residents.
Summary
House Bill 4789, introduced by Delegate Young, seeks to amend the Code of West Virginia by prohibiting tax preparation software companies from charging any fees for electronically filing state tax returns. This legislation aims to alleviate cost burdens on taxpayers, who often rely on such software to file their taxes more efficiently and accurately. By ensuring that taxpayers are not charged for electronic filing, the bill intends to promote increased accessibility and affordability of tax filing services.
Sentiment
Overall sentiment towards HB4789 appears to be positive among advocates who support the reduction of fees associated with tax preparation processes. Proponents argue that this bill is a necessary step toward relieving financial pressure on taxpayers, especially those with lower incomes who may struggle to afford tax services. However, concerns may exist regarding the impact on software companies’ revenues and the potential challenges they face in adapting their business models to comply with these new regulations.
Contention
Notable points of contention surrounding HB4789 may include debates regarding the sustainability of tax preparation software companies without the ability to charge fees. Some critics might argue that the absence of such fees could diminish the quality or availability of services provided by these companies. Furthermore, there may be questions regarding the implementation and enforcement of the bill, such as how to ensure compliance from various developers and vendors of tax software.
Fostering Autonomy in Independent Returns by Prohibiting Redundant and Extralegal Programs Act of 2025 or the FAIR PREP Act of 2025This bill prohibits the Internal Revenue Service (IRS) from preparing federal tax returns or refund claims, with some exceptions. The bill specifically prohibits the preparation of federal income tax returns or refund claims through the IRS’s Direct File program. (The Direct File program currently allows qualified taxpayers in 25 participating states to prepare and electronically file free federal tax returns through a portal on the IRS’s website.)The bill defines prepare with respect to federal tax returns and refund claims as (1) the completion (in whole or in part) of any form or schedule for the purpose of calculating federal taxes or refunds, and (2) the filing (either electronically or on paper) of such federal tax returns or refund claims.However, under the bill, federal and state tax returns and refund claims may be prepared through the IRS’s Free File program (a program that allows certain taxpayers to prepare and file free federal and state income tax returns using third-party tax-preparation software) or the Volunteer Income Tax Assistance grant program (through which the IRS partners with local community organizations to help low-income and disabled individuals and persons with limited English proficiency prepare and file free federal and state income tax returns). Further, the Department of the Treasury may not award grants or enter into contracts or other transactions for the development or operation of an electronic tax preparation service.
Tax preparation services; tax preparers prohibited from marking a tax return to designate a contribution to the state elections campaign account without explicit instruction from the taxpayer.