Referred to the House Committee on Ways and Means.
The bill directs the Treasury Secretary to regulate tax return preparers by adding tax preparer practice and standards to 31 U.S.C. §330, requiring identification numbers, examinations, continuing education, and background checks, and authorizing rescission of preparer identifying numbers for incompetence or disreputability. It defines preparer, return, and refund claim terms by reference to the Internal Revenue Code, and updates IRC §6109 to require preparer identifying numbers on returns with limited exceptions.
Progressives emphasize consumer protection and oversight benefits.
Relative to its intended legislative type, this bill establishes clear statutory authority and concrete legal changes to regulate tax return preparers but provides only partial operational detail and omits funding and many implementation safeguards.
The bill directs the Treasury Secretary to regulate tax return preparers by adding tax preparer practice and standards to 31 U.S.C. §330, requiring identification numbers, examinations, continuing education, and background checks, and authorizing rescission of preparer identifying numbers for incompetence or disreputability.
It defines preparer, return, and refund claim terms by reference to the Internal Revenue Code, and updates IRC §6109 to require preparer identifying numbers on returns with limited exceptions.
Separately, the bill requires the IRS to implement an algorithm to identify taxpayers at risk of economic hardship and to set information security standards for tax software providers, with ongoing review.
Moderately technical reforms with some bipartisan appeal but notable industry resistance, administrative costs, and Senate hurdles reduce chances.
Relative to its intended legislative type, this bill establishes clear statutory authority and concrete legal changes to regulate tax return preparers but provides only partial operational detail and omits funding and many implementation safeguards.
Progressives emphasize consumer protection and oversight benefits.
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize consumer protection and oversight benefits.
Generally supportive because the bill strengthens oversight of paid tax preparers, protects taxpayers from incompetence or misconduct, and requires the IRS to identify hardship.
They view security standards for tax software as consumer protection.
They may worry about access for low-income taxpayers if compliance costs are large.
Cautiously supportive of stronger preparer standards and IRS modernization if implementation is clear, costed, and preserves taxpayer access.
Sees merit in security rules and hardship protections but wants safeguards against burdensome rules and algorithmic errors.
Skeptical due to increased federal regulation of small businesses, privacy concerns from background checks, and expanded IRS authority via algorithms and rescission power.
May accept targeted measures for fraud prevention but prefers limited federal intervention.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Moderately technical reforms with some bipartisan appeal but notable industry resistance, administrative costs, and Senate hurdles reduce chances.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize consumer protection and oversight benefits.
Moderately technical reforms with some bipartisan appeal but notable industry resistance, administrative costs, and Senate hurdles reduce c…
Relative to its intended legislative type, this bill establishes clear statutory authority and concrete legal changes to regulate tax return preparers but provides only partial operational detail and omits funding and m…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.