I 

118TH CONGRESS 

2D SESSION H. R. 10461 

To set minimum standards for tax return preparers. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2024 

Mr. PANETTA (for himself, Ms. CHU, Ms. DELBENE, Mr. SUOZZI, and Ms. 

NORTON) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To set minimum standards for tax return preparers. 

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 ‘‘Taxpayer Protection 

5 and Preparer Proficiency Act of 2024’’. 

6 SEC. 2. REGULATION OF TAX RETURN PREPARERS. 

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

8 title 31, United States Code, is amended— 

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

10 following: 

11 ‘‘(1) regulate— 


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1 ‘‘(A) the practice of representatives of per2 sons before the Department of the Treasury; 

3 and 

4 ‘‘(B) the practice of tax return preparers; 

5 and’’; and 

6 (2) in paragraph (2)— 

7 (A) by inserting ‘‘or a tax return preparer 

8 to prepare tax returns’’ after ‘‘practice’’; 

9 (B) by inserting ‘‘or tax return preparer’’ 

10 before ‘‘demonstrate’’; and 

11 (C) by inserting ‘‘or in preparing their tax 

12 returns, claims for refund, or documents in con13 nection with tax returns or claims for refund’’ 

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

15 (b) AUTHORITY TO SANCTION REGULATED TAX RE16 TURN PREPARERS.—Subsection (c) of section 330 of title 

17 31, United States Code, is amended— 

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

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

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

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

22 threatens’’ and all that follows and inserting ‘‘mis23 leads or threatens— 

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

25 prospective person being represented; or 


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1 ‘‘(B) any person or prospective person 

2 whose tax return, claim for refund, or document 

3 in connection with a tax return or claim for re4 fund, is being or may be prepared.’’. 

5 (c) MINIMUM COMPETENCY STANDARDS FOR TAX

6 RETURN PREPARERS.—Section 330 of title 31, United 

7 States Code, is amended by adding at the end the fol8 lowing new subsection: 

9 ‘‘(f) TAX RETURN PREPARERS.— 

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

11 shall demonstrate minimum competency standards 

12 under this subsection by— 

13 ‘‘(A) obtaining an identifying number for 

14 securing proper identification of such preparer 

15 as described in section 6109(a)(4) of the Inter16 nal Revenue Code of 1986; 

17 ‘‘(B) satisfying any examination and an18 nual continuing education requirements as pre19 scribed by the Secretary; and 

20 ‘‘(C) completing a background check ad21 ministered by the Secretary. 

22 ‘‘(2) EXEMPTION.—The Secretary shall exempt 

23 tax return preparers who have been subject to com24 parable examination, continuing education require25 ments, and background checks administered by the 


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1 Secretary or any comparable State licensing pro2 gram. Such exemption shall extend directly to indi3 viduals who are supervised by such preparers and 

4 are not required to secure an identification number 

5 under section 6109(a)(4). 

6 ‘‘(3) REINSTATEMENT OF REGISTERED TAX RE7 TURN PREPARER PROGRAM.—The Secretary shall 

8 issue regulations under this section reinstating the 

9 Registered Tax Return Preparer Program. Examina10 tion of tax return prepares under such program shall 

11 be limited to a one-time, basic individual income tax 

12 examination and the annual continuing education re13 quirement under such program shall not exceed 15 

14 hours.’’. 

15 (d) TAX RETURN PREPARER DEFINED.—Section 

16 330 of title 31, United States Code, as amended by sub17 section (c), is amended by adding at the end the following 

18 new subsection: 

19 ‘‘(g) TAX RETURN PREPARER.—For purposes of this 

20 section— 

21 ‘‘(1) IN GENERAL.—The term ‘tax return pre22 parer’ has the meaning given such term under sec23 tion 7701(a)(36) of the Internal Revenue Code of 

24 1986. 


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1 ‘‘(2) TAX RETURN.—The term ‘tax return’ has 

2 the meaning given to the term ‘return’ under section 

3 6696(e)(1) of the Internal Revenue Code of 1986. 

4 ‘‘(3) CLAIM FOR REFUND.—The term ‘claim for 

5 refund’ has the meaning given such term under sec6 tion 6696(e)(2) of such Code.’’. 

7 (e) AMENDMENTS WITH RESPECT TO IDENTIFYING

8 NUMBER.— 

9 (1) IN GENERAL.—Section 6109(a) of the In10 ternal Revenue Code of 1986 is amended by striking 

11 paragraph (4) and inserting the following: 

12 ‘‘(4) FURNISHING IDENTIFYING NUMBER OF

13 TAX RETURN PREPARER.— 

14 ‘‘(A) IN GENERAL.—Any return or claim 

15 for refund prepared by a tax return preparer 

16 shall bear such identifying number for securing 

17 proper identification of such preparer, his em18 ployer, or both, as may be prescribed. For pur19 poses of this paragraph, the terms ‘return’ and 

20 ‘claim for refund’ have the respective meanings 

21 given to such terms by section 6696(e). 

22 ‘‘(B) EXCEPTION.—Subparagraph (A) 

23 shall not apply with respect to the preparation 

24 of any return or claim for refund by a tax re25 turn preparer if— 


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1 ‘‘(i) such return or claim is prepared 

2 by such preparer while such preparer is 

3 employed by an attorney, certified public 

4 accountant, or enrolled agent firm, and 

5 ‘‘(ii) such preparer prepares such re6 turn or claim under the supervision and di7 rection of a tax return preparer who signs 

8 such return or claim and is an attorney, 

9 certified public accountant, or enrolled 

10 agent.’’. 

11 (2) CLARIFICATION OF RESCISSION AUTHOR12 ITY.—Section 6109 of such Code is amended by in13 serting after subsection (d) the following new sub14 section: 

15 ‘‘(e) AUTHORITY TO RESCIND IDENTIFYING NUM16 BER OF TAX RETURN PREPARER.— 

17 ‘‘(1) IN GENERAL.—The Secretary may rescind 

18 an identifying number issued under subsection 

19 (a)(4) if— 

20 ‘‘(A) after notice and opportunity for a 

21 hearing, the preparer is shown to be incom22 petent or disreputable (as such terms are used 

23 in subsection (c) of section 330 of title 31, 

24 United States Code); and 


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1 ‘‘(B) rescinding the identifying number 

2 would promote compliance with the require3 ments of this title and effective tax administra4 tion. 

5 ‘‘(2) RECORDS.—If an identifying number is re6 scinded under paragraph (1), the Secretary shall 

7 place in the file in the Office of the Director of Pro8 fessional Responsibility the opinion of the Secretary 

9 with respect to the determination, including— 

10 ‘‘(A) a statement of the facts and cir11 cumstances relating to the determination; and 

12 ‘‘(B) the reasons for the rescission.’’. 

13 (f) GAO STUDY AND REPORT ON THE EXCHANGE

14 OF INFORMATION BETWEEN THE IRS AND STATE TAX15 ATION AUTHORITIES.— 

16 (1) IN GENERAL.—Not later than 18 months 

17 after the date of the enactment of this Act, the 

18 Comptroller General shall conduct a study and sub19 mit to Congress a report on the sharing of informa20 tion between the Secretary of the Treasury and 

21 State authorities, as authorized under section 

22 6103(d) of the Internal Revenue Code of 1986, re23 garding identification numbers issued to paid tax re24 turn preparers and return preparer minimum stand25 ards. 


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1 (2) INCREASED INFORMATION SHARING.—The 

2 study and report described in paragraph (1) shall in3 clude an analysis of the impact that increased infor4 mation sharing between Federal and State authori5 ties would have on efforts to enforce minimum 

6 standards on paid tax return preparers. 

Æ 


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