I 
119TH CONGRESS 
1ST SESSION H. R. 1983 
To amend title 31, United States Code, to direct the Secretary of the 
Treasury to regulate tax return preparers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2025 
Mr. COHEN introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend title 31, United States Code, to direct the Sec-
retary of the Treasury to regulate 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 Return Preparer 
Accountability Act of 2025’’. 
SEC. 2. REGULATION OF TAX RETURN PREPARERS. 
(a) IN GENERAL.—Subsection (a) of section 330 of 
title 31, United States Code, is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
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‘‘(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’’; and 
(C) by inserting ‘‘or in preparing their tax 
returns, claims for refund, or documents in con-
nection with tax returns or claims for refund’’ 
after ‘‘cases’’ in subparagraph (D). 
(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’’; 
(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— 
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‘‘(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) 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; 
‘‘(B) satisfying any examination and an-
nual continuing education requirements as pre-
scribed by the Secretary; and 
‘‘(C) completing a background check ad-
ministered by the Secretary. 
‘‘(2) EXEMPTION.—The Secretary shall exempt 
tax return preparers who have been subject to com-
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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 
under section 6109(a)(4).’’. 
(d) TAX RETURN PREPARER DEFINED.—Section 
330 of title 31, United States Code, as amended by sub-
section (c), is amended by adding at the end the following 
new subsection: 
‘‘(g) TAX RETURN PREPARER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘tax return pre-
parer’ has the meaning given such term under sec-
tion 7701(a)(36) of the Internal Revenue Code of 
1986. 
‘‘(2) TAX RETURN.—The term ‘tax return’ has 
the meaning given to the term ‘return’ under section 
6696(e)(1) of the Internal Revenue Code of 1986. 
‘‘(3) CLAIM FOR REFUND.—The term ‘claim for 
refund’ has the meaning given such term under sec-
tion 6696(e)(2) of such Code.’’. 
(e) AMENDMENTS WITH RESPECT TO IDENTIFYING 
NUMBER.— 
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(1) IN GENERAL.—Section 6109(a) of the In-
ternal Revenue Code of 1986 is amended by striking 
paragraph (4) and inserting the following: 
‘‘(4) FURNISHING
IDENTIFYING
NUMBER
OF 
TAX RETURN PREPARER.— 
‘‘(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 by section 6696(e). 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply with respect to the preparation 
of any return or claim for refund by a tax re-
turn preparer if— 
‘‘(i) such return or claim is prepared 
by such preparer while such preparer is 
employed by an attorney, certified public 
accountant, or enrolled agent firm, and 
‘‘(ii) such preparer prepares such re-
turn or claim under the supervision and di-
rection of a tax return preparer who signs 
such return or claim and is an attorney, 
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certified public accountant, 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— 
‘‘(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— 
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‘‘(A) a statement of the facts and cir-
cumstances relating to the determination; and 
‘‘(B) the reasons for the rescission.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to returns filed after 
the date of the enactment of this Act. 
SEC. 3. TECHNOLOGY UPDATES AT INTERNAL REVENUE 
SERVICE. 
(a) IMPLEMENTATION OF AUTOMATED FORMULA TO 
IDENTIFY TAXPAYERS AT RISK OF ECONOMIC HARD-
SHIP.—As soon as practicable, the Secretary of the Treas-
ury (or the Secretary’s delegate), shall implement at the 
Internal Revenue Service an algorithm that will enable the 
Internal Revenue Service to— 
(1) identify taxpayers at high risk of economic 
hardship (as defined by the Secretary in regula-
tions), 
(2) ask questions of taxpayers who contact the 
Internal Revenue Service regarding a balance due 
for purposes of identifying those at risk of hardship, 
(3) in the case of taxpayers at risk of economic 
hardship who seek to enter into streamlined install-
ment agreements online, to notify such taxpayers of 
the resources available to them, 
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(4) determine whether to exclude taxpayers’ 
debts from automated collection treatments such as 
the Federal Payment Levy Program, the private 
debt collection program, and passport certification, 
and 
(5) rank cases for collection priority. 
(b) SECURITY STANDARDS FOR TAX SOFTWARE.— 
The Secretary of the Treasury (or the Secretary’s dele-
gate), shall— 
(1) as soon as practicable, promulgate such reg-
ulations and guidance as are necessary to prescribe 
information security standards for all tax software 
providers, and 
(2) annually thereafter, review and update such 
standards. 
Æ 
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