H.R.3330 - Taxpayer Protection and Preparer Proficiency Act of 2019116th Congress (2019-2020) |
|Sponsor:||Rep. Yoho, Ted S. [R-FL-3] (Introduced 06/18/2019)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 06/18/2019 Referred to the House Committee on Ways and Means. (All Actions)|
This bill has the status Introduced
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- Passed Senate
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Text: H.R.3330 — 116th Congress (2019-2020)All Information (Except Text)
There is one version of the bill.
Text available as:
Introduced in House (06/18/2019)
To set minimum standards for tax return preparers.
Mr. Yoho (for himself, Mr. Panetta, and Ms. DelBene) introduced the following bill; which was referred to the Committee on Ways and Means
To set minimum standards for tax return preparers.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the “Taxpayer Protection and Preparer Proficiency Act of 2019”.
(1) by striking paragraph (1) and inserting the following:
“(A) the practice of representatives of persons before the Department of the Treasury; and
“(B) the practice of tax return preparers; and”; and
(A) by inserting “or a tax return preparer to prepare tax returns” after “practice”;
(B) by inserting “or tax return preparer” before “demonstrate”; and
(C) by inserting “or in preparing their tax returns, claims for refund, or documents in connection with tax returns or claims for refund” after “cases” in subparagraph (D).
(1) by striking “before the Department”;
(2) by inserting “or tax return preparer” after “representative” each place it appears; and
“(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:
“(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. 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).”.
(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:
“(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.”.
(1) IN GENERAL.—Section 6109(a) is amended by striking paragraph (4) and inserting the following:
“(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 by section 6696(e).
“(B) EXCEPTION.—Subparagraph (A) shall not apply to any tax return preparer who prepares a return or claim for refund under the supervision and direction of a tax return preparer who signs the return or claim for refund and is a certified public accountant, an attorney or enrolled agent.”.
(2) CLARIFICATION OF RESCISSION AUTHORITY.—Section 6109 is amended by inserting after subsection (d) the following new subsection: “(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
“(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.”.
(1) IN GENERAL.—Not later than 18 months after the date of the enactment of this Act, the Comptroller General shall conduct a study and submit to Congress a report on the sharing of information between the Secretary of the Treasury and State authorities, as authorized under section 6103(d) of the Internal Revenue Code of 1986, regarding identification numbers issued to paid tax return preparers and return preparer minimum standards.
(2) INCREASED INFORMATION SHARING.—The study and report described in paragraph (1) shall include an analysis of the impact that increased information sharing between Federal and State authorities would have on efforts to enforce minimum standards on paid tax return preparers.