Massachusetts Sen. Elizabeth Warren is filing legislation that would require the IRS to develop a free, online tax preparation service taxpayers could use to file returns directly with the federal government.
The bill also would let taxpayers download third-party-reported tax information and ban the IRS from entering into agreements restricting its ability to provide the tax preparation services.
Warren will file the bill Wednesday.
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Warren says taxpayers spend an average 13 hours preparing their taxes, paying about $200 for tax preparation services - almost 10 percent of the average federal tax refund.
The bill is co-sponsored by Vermont Sen Bernie Sanders and Democratic Sens. Sheldon Whitehouse of Rhode Island, Tom Udall of New Mexico, Jeanne Shaheen of New Hampshire, Al Franken of Minnesota, Tammy Baldwin of Wisconsin, and Edward Markey of Massachusetts.