I 
116TH CONGRESS 
2D SESSION 
H. R. 8501 
To establish minimum competency standards for tax return preparers, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2020 
Mr. VELA introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To establish minimum competency standards for tax return 
preparers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax-preparer Enforce-
ment, Accountability, and Minimum Standards Act’’ or 
the ‘‘TEAMS Act’’. 
SEC. 2. REGULATION OF TAX RETURN PREPARERS. 
(a) IN GENERAL.—Subsection (a) of section 330 of 
title 31, United States Code, is amended— 
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(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) regulate— 
‘‘(A) the practice of representatives of per-
sons before the Department of the Treasury; 
and 
‘‘(B) the practice of tax return preparers; 
and’’; and 
(2) in paragraph (2)— 
(A) by inserting ‘‘or a tax return preparer 
to prepare tax returns’’ after ‘‘practice’’; 
(B) by inserting ‘‘or tax return preparer’’ 
before ‘‘demonstrate’’; 
(C) in subparagraph (C), by inserting ‘‘and 
minimum competency standards’’ after ‘‘nec-
essary qualifications’’; and 
(D) in subparagraph (D), by striking the 
period at the end and inserting ‘‘or in preparing 
their tax returns, claims for refund, or docu-
ments in connection with tax returns or claims 
for refund.’’ 
(b) AUTHORITY TO SANCTION REGULATED TAX RE-
TURN PREPARERS.—Subsection (c) of section 330 of title 
31, United States Code, is amended— 
(1) by striking ‘‘before the Department’’; 
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(2) by inserting ‘‘or tax return preparer’’ after 
‘‘representative’’ each place it appears; and 
(3) in paragraph (4), by striking ‘‘misleads or 
threatens’’ and all that follows and inserting ‘‘mis-
leads or threatens— 
‘‘(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 re-
fund, 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 fol-
lowing new subsection: 
‘‘(f) MINIMUM COMPETENCY STANDARDS FOR TAX 
RETURN PREPARERS.— 
‘‘(1) IN
GENERAL.—Any tax return preparer 
shall demonstrate minimum competency standards 
under this subsection by— 
‘‘(A) obtaining an identifying number for 
securing proper identification of such preparer 
as described in section 6109(a)(4) of the Inter-
nal Revenue Code of 1986; 
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‘‘(B) satisfying any examination and con-
tinuing education requirements as prescribed by 
the Secretary, including— 
‘‘(i) holding a high school diploma or 
passing an equivalency exam; 
‘‘(ii) completing 30 hours of tax prep-
aration training (or work deemed equiva-
lent); 
‘‘(iii) passing a tax preparation exam 
with a score of 70 percent or greater every 
5 years; and 
‘‘(iv) completing 15 hours of con-
tinuing education every 2 years; and 
‘‘(C) completing a background check ad-
ministered by the Secretary which does not re-
turn any felony convictions. 
‘‘(2) EXEMPTION.—The Secretary shall exempt 
tax return preparers who have been subject to com-
parable examination, continuing education require-
ments, and background checks administered by the 
Secretary or any comparable State licensing pro-
gram. Such exemption shall extend directly to indi-
viduals who are supervised by such preparers and 
are not required to secure an identification number 
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‘‘(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 em-
ployer, or both, as may be prescribed. For pur-
poses of this paragraph, the terms ‘return’ and 
‘claim for refund’ have the respective meanings 
given to such terms in 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 pre-
parer who signs the return or claim for refund 
and is a certified public accountant, an attorney 
or enrolled agent.’’. 
(2) CLARIFICATION
OF
RESCISSION
AUTHOR-
ITY.—Section 6109 of such Code is amended by in-
serting after subsection (d) the following new sub-
section: 
‘‘(e) AUTHORITY TO RESCIND IDENTIFYING NUM-
BER OF TAX RETURN PREPARER.— 
‘‘(1) IN GENERAL.—The Secretary may rescind 
an identifying number issued under subsection 
(a)(4) if— 
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‘‘(A) after notice and opportunity for a 
hearing, the preparer is shown to be incom-
petent 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 require-
ments of this title and effective tax administra-
tion. 
‘‘(2) RECORDS.—If an identifying number is re-
scinded under paragraph (1), the Secretary shall 
place in the file in the Office of the Director of Pro-
fessional Responsibility the opinion of the Secretary 
with respect to the determination, including— 
‘‘(A) a statement of the facts and cir-
cumstances relating to the determination, and 
‘‘(B) the reasons for the rescission.’’. 
Æ 
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