**GAO-08-781**                      Published: Aug 15, 2008. Publicly Released: Sep 15, 2008.                  

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## Highlights

Millions of taxpayers use paid tax return preparers and many of these paid preparers are not subject to any qualification requirements. Paid preparers in California and Oregon are exceptions in that these states have set paid preparer qualification standards. Additionally, two bills before Congress would require national paid preparer regulations. To help Congress better understand the potential costs and revenue effects of regulating paid preparers, GAO was asked to study (1) how IRS, California, Oregon, and other states regulate paid preparers, (2) how the accuracy of federal tax returns from California and Oregon compare to other returns, and (3) state-level costs and benefits of the California and Oregon programs and insights they provide for a possible national program. GAO analyzed IRS research data on tax return accuracy; interviewed IRS officials, state administrators, and preparer community representatives; and reviewed relevant documents.

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## Topics

Tax Policy and Administration

Administrative costsCost analysisFederal regulationsFederal taxesstate relationsFinancial managementIncome taxesPersonal income taxesProgram evaluationStandardsStandards evaluationState legislationState-administered programsTax administrationTax administration systemsTax consultantsTax information confidentialityTax lawTax returnsTaxesTaxpayersProgram goals or objectives