I 

114TH CONGRESS 

1ST SESSION H. R. 4141 

To ensure that tax return preparers demonstrate minimum standards of 

competency. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2015 

Mrs. BLACK (for herself and Mr. MEEHAN) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To ensure that tax return preparers demonstrate minimum 

standards of competency. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Return Preparer 

5 Competency Act of 2015’’. 

6 SEC. 2. MINIMUM COMPETENCY STANDARDS FOR TAX RE7 TURN PREPARERS. 

8 (a) IN GENERAL.—Subsection (a) of section 330 of 

9 title 31, United States Code, is amended— 


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1 (1) by striking paragraph (1) and inserting the 

2 following: 

3 ‘‘(1) regulate— 

4 ‘‘(A) the practice of representatives of per5 sons before the Department of the Treasury; 

6 and 

7 ‘‘(B) tax return preparers (as defined in 

8 section 7701(a)(36) of the Internal Revenue 

9 Code of 1986); and’’; and 

10 (2) in paragraph (2)— 

11 (A) by inserting ‘‘or tax return preparer’’ 

12 after ‘‘representative’’ each place it appears; 

13 and 

14 (B) by inserting ‘‘or in preparing their tax 

15 returns, claims for refund, or documents in con16 nection with tax returns or claims for refund’’ 

17 after ‘‘cases’’ in subparagraph (D). 

18 (b) FAILURE TO MEET MINIMUM COMPETENCY

19 STANDARDS.—Subsection (b) of section 330 of title 31, 

20 United States Code, is amended— 

21 (1) by striking ‘‘before the Department’’; 

22 (2) by inserting ‘‘or tax return preparer’’ after 

23 ‘‘representative’’ each place it appears; and 


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1 (3) in paragraph (4), by striking ‘‘misleads or 

2 threatens’’ and all that follows and inserting ‘‘mis3 leads or threatens— 

4 ‘‘(A) any person being represented or any 

5 prospective person being represented; or 

6 ‘‘(B) any person or prospective person 

7 whose return (as defined in section 6696(e)(1) 

8 of the Internal Revenue Code of 1986), claim 

9 for refund (as defined in section 6696(e)(2) of 

10 such Code), or document in connection with a 

11 return or claim for refund, is being or may be 

12 prepared.’’. 

13 (c) MINIMUM COMPETENCY STANDARDS FOR TAX

14 RETURN PREPARERS.— 

15 (1) IN GENERAL.—Section 330 of title 31, 

16 United States Code, is amended by adding at the 

17 end the following new subsection: 

18 ‘‘(e) TAX RETURN PREPARERS.— 

19 ‘‘(1) IN GENERAL.—Any tax return preparer 

20 (as defined in section 7701(a)(36) of the Internal 

21 Revenue Code of 1986) shall demonstrate minimum 

22 competency standards under this subsection, by— 

23 ‘‘(A) obtaining an identifying number for 

24 securing proper identification of such preparer 


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1 as described in section 6109(a)(4) of the Inter2 nal Revenue Code of 1986; 

3 ‘‘(B) satisfying the examination require4 ments described in paragraph (2); 

5 ‘‘(C) satisfying the annual continuing edu6 cation requirements described in paragraph (3); 

7 and 

8 ‘‘(D) completing a background check as 

9 described in paragraph (4). 

10 ‘‘(2) EXAMINATION.— 

11 ‘‘(A) IN GENERAL.—A tax return preparer 

12 shall provide the Secretary with proof of suc13 cessful completion of an examination that evalu14 ates the knowledge and competency of the tax 

15 return preparer, as prescribed by the Secretary 

16 through regulations, forms or instructions, re17 garding— 

18 ‘‘(i) preparation of a return (as de19 fined in section 6696(e)(1) of the Internal 

20 Revenue Code of 1986); 

21 ‘‘(ii) ethical standards for preparation 

22 of such returns; and 

23 ‘‘(iii) other topics as the Secretary 

24 may prescribe. 


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1 ‘‘(B) EXCEPTIONS.—The Secretary shall 

2 exempt tax return preparers from the examina3 tion requirements under this paragraph pursu4 ant to such requirements as are determined ap5 propriate by the Secretary, which shall include 

6 any comparable examinations administered by 

7 the Secretary or any comparable State licensing 

8 or registration programs. 

9 ‘‘(3) CONTINUING EDUCATION.—A tax return 

10 preparer shall complete continuing education on an 

11 annual basis, which shall consist of not less than 15 

12 hours of instruction, which shall include not less 

13 than 2 hours of training relating to ethics and not 

14 less than 3 hours relating to Federal tax law up15 dates. 

16 ‘‘(4) BACKGROUND CHECK.— 

17 ‘‘(A) IN GENERAL.—A tax return preparer 

18 shall demonstrate the requirements of sub19 section (a)(2) by providing the Secretary with a 

20 report, as prescribed by the Secretary through 

21 regulations, forms or instructions. 

22 ‘‘(B) EXCEPTIONS.—The Secretary shall 

23 exempt tax return preparers who have been 

24 subject to comparable background checks adVerDate Sep 11 2014 02:12 Dec 04, 2015 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4141.IH H4141

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1 ministered by the Secretary or any comparable 

2 State licensing or registration programs.’’. 

3 (d) CONTINGENCY FEES.—The Secretary of the 

4 Treasury may not regulate, prohibit, or restrict the use 

5 of a contingent fee in connection with tax returns, claims 

6 for refund, or documents in connection with tax returns 

7 or claims for refund prepared on behalf of a taxpayer. 

8 (e) PUBLIC DATABASE FOR TAX RETURN PRE9 PARERS.—Not later than 1 year after the date of the en10 actment of this Act, the Secretary of the Treasury, shall 

11 ensure that the name and identification number (as de12 scribed in section 6109(a)(4) of the Internal Revenue 

13 Code of 1986) of any tax return preparer who satisfies 

14 the requirements under section 330 of title 31, United 

15 States Code, is made publicly available through such 

16 measures as are determined appropriate by the Secretary, 

17 which may include the use of any publicly available data18 base that has been established and operated by the Sec19 retary on or before the date of the enactment of this Act. 

Æ 


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