Democratic leaders put down a last-minute revolt from liberal lawmakers who feared it would enrich private tax preparers.
By Jeff Stein and Jeff Stein Economic policy reporter Email Bio Follow Rachael Bade Rachael Bade Congressional reporter Email Bio Follow April 9 at 4:09 PM Liberals abandoned a last-minute rebellion Tuesday over a bill to change the Internal Revenue Service, with Democratic leaders easily pushing legislation through the House that would bar the IRS from creating free tax preparation software.
On Tuesday, ProPublica reported that the legislation included a provision to codify an existing arrangement preventing the IRS from creating online tax filing software to compete with private services such as TurboTax. Under a memorandum of understanding between a group of private tax preparers and the IRS, the government may not offer free online filing services to taxpayers.
But liberal lawmakers had threatened to tank the legislation over the provision, with Hill earlier in the day calling it a “sneaky provision the tax preparation lobby has been pushing for, and it hurts consumers.” Rep. Ro Khanna had also strongly criticized the measure and vowed to oppose it.
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