[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7341 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7341
To move the taxpayer bill of rights to the front of the Internal
Revenue Code of 1986, to establish minimum competency standards for tax
return preparers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 31, 2022
Mr. Newhouse introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To move the taxpayer bill of rights to the front of the Internal
Revenue Code of 1986, to establish minimum competency standards for tax
return preparers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``System Transparency and
Accountability for the IRS Act''.
SEC. 2. PROMINENT DISPLAY OF TAXPAYER BILL OF RIGHTS.
(a) In General.--The Internal Revenue Code of 1986 is amended by
striking section 7803(a)(3) and by inserting the following before
subtitle A:
``In discharging his duties, the Commissioner of Internal Revenue shall ensure
that employees of the Internal Revenue Service are familiar with and act
in accord with taxpayer rights as afforded by other provisions of this
title, including--
``(1) the right to be informed,
``(2) the right to quality service,
``(3) the right to pay no more than the correct
amount of tax,
``(4) the right to challenge the position of the
Internal Revenue Service and be heard,
``(5) the right to appeal a decision of the Internal
Revenue Service in an independent forum,
``(6) the right to finality,
``(7) the right to privacy,
``(8) the right to confidentiality,
``(9) the right to retain representation, and
``(10) the right to a fair and just tax system.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 3. REGULATION OF TAX RETURN PREPARERS.
(a) In General.--Subsection (a) of section 330 of title 31, United
States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) regulate--
``(A) the practice of representatives of persons
before the Department of the Treasury; and
``(B) the practice of tax return preparers; and'';
and
(2) in paragraph (2)--
(A) by inserting ``or a tax return preparer to
prepare tax returns'' after ``practice'';
(B) by inserting ``or tax return preparer'' before
``demonstrate'';
(C) in subparagraph (C), by inserting ``and minimum
competency standards'' after ``necessary
qualifications''; and
(D) in subparagraph (D), by striking the period at
the end and inserting ``or in preparing their tax
returns, claims for refund, or documents in connection
with tax returns or claims for refund.''.
(b) Authority To Sanction Regulated Tax Return Preparers.--
Subsection (c) of section 330 of title 31, United States Code, is
amended--
(1) by inserting ``or tax return preparer'' after
``representative'' each place it appears; and
(2) in paragraph (4), by striking ``misleads or threatens''
and all that follows and inserting ``misleads or threatens--
``(A) any person being represented or any
prospective person being represented; or
``(B) any person or prospective person whose tax
return, claim for refund, or document in connection
with a tax return or claim for refund, is being or may
be prepared.''.
(c) Minimum Competency Standards for Tax Return Preparers.--Section
330 of title 31, United States Code, is amended by adding at the end
the following new subsection:
``(f) Minimum Competency Standards for Tax Return Preparers.--
``(1) In general.--Except as provided in paragraph (2), a
tax return preparer shall demonstrate minimum competency
standards under this subsection by--
``(A) obtaining an identifying number for securing
proper identification of such preparer as described in
section 6109(a)(4) of the Internal Revenue Code of
1986;
``(B) satisfying any examination and annual
continuing education requirements as prescribed by the
Secretary; and
``(C) completing a background check administered by
the Secretary.
``(2) Exemption.--The Secretary shall exempt tax return
preparers who have been subject to comparable examination,
continuing education requirements, and background checks
administered by the Secretary or any comparable State licensing
program from the applicable requirements of paragraph (1). Such
exemption shall extend directly to individuals who are
supervised by such preparers and are not required to secure an
identification number under section 6109(a)(4) of the Internal
Revenue Code of 1986.
``(3) Reinstatement of registered tax return preparer
program.--The Secretary shall issue regulations under this
section reinstating the Registered Tax Return Preparer Program.
Examination of tax return prepares under such program shall be
limited to a one-time, basic individual income tax examination
and the annual continuing education requirement under such
program shall not exceed 15 hours.''.
(d) Tax Return Preparer Defined.--Section 330 of title 31, United
States Code, as amended by subsection (c), is amended by adding at the
end the following new subsection:
``(g) Tax Return Preparer.--For purposes of this section--
``(1) In general.--The term `tax return preparer' has the
meaning given such term under section 7701(a)(36) of the
Internal Revenue Code of 1986.
``(2) Tax return.--The term `tax return' has the meaning
given to the term `return' under section 6696(e)(1) of the
Internal Revenue Code of 1986.
``(3) Claim for refund.--The term `claim for refund' has
the meaning given such term under section 6696(e)(2) of such
Code.''.
(e) Amendments With Respect to Identifying Number.--
(1) In general.--Paragraph (4) of section 6109(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(4) Furnishing identifying number of tax return
preparer.--
``(A) In general.--Any return or claim for refund
prepared by a tax return preparer shall bear such
identifying number for securing proper identification
of such preparer, his employer, or both, as may be
prescribed. For purposes of this paragraph, the terms
`return' and `claim for refund' have the respective
meanings given to such terms in section 6696(e).
``(B) Exception.--Subparagraph (A) shall not apply
with respect to the preparation of any return or claim
for refund by a tax return preparer if--
``(i) such return or claim is prepared by
such preparer while such preparer is employed
by an attorney, certified public accountant, or
enrolled agent firm, and
``(ii) such preparer prepares such return
or claim under the supervision and direction of
a tax return preparer who signs such return or
claim and is an attorney, certified public
accountant, or enrolled agent.''.
(2) Clarification of rescission authority.--Section 6109 of
such Code is amended by inserting after subsection (d) the
following new subsection:
``(e) Authority To Rescind Identifying Number of Tax Return
Preparer.--
``(1) In general.--The Secretary may rescind an identifying
number issued under subsection (a)(4) if--
``(A) after notice and opportunity for a hearing,
the preparer is shown to be incompetent or disreputable
(as such terms are used in subsection (c) of section
330 of title 31, United States Code), and
``(B) rescinding the identifying number would
promote compliance with the requirements of this title
and effective tax administration.
``(2) Records.--If an identifying number is rescinded under
paragraph (1), the Secretary shall place in the file in the
Office of the Director of Professional Responsibility the
opinion of the Secretary with respect to the determination,
including--
``(A) a statement of the facts and circumstances
relating to the determination, and
``(B) the reasons for the rescission.''.
(3) Effective date.--The amendments made by this section
shall take effect on the date which is 180 days after the date
of the enactment of this Act.
SEC. 4. REPORT.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury (or the Secretary's delegate) shall
submit to Congress a report detailing the implementation of tax
preparer minimum standards under section 330(f) of title 31, United
States Code (as added by this Act).
<all>