I 
117TH CONGRESS 
2D SESSION 
H. R. 7341 
To move the taxpayer bill of rights to the front of the Internal Revenue 
Code of 1986, to establish minimum competency standards for tax return 
preparers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 31, 2022 
Mr. NEWHOUSE introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To move the taxpayer bill of rights to the front of the 
Internal Revenue Code of 1986, 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 ‘‘System Transparency 
and Accountability for the IRS Act’’. 
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SEC. 2. PROMINENT DISPLAY OF TAXPAYER BILL OF 
RIGHTS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by striking section 7803(a)(3) and by 
inserting the following before subtitle A: 
‘‘In discharging his duties, the Commissioner of Internal Rev-
enue shall ensure that employees of the Internal Revenue 
Service are familiar with and act in accord with taxpayer 
rights as afforded by other provisions of this title, includ-
ing— 
‘‘(1) the right to be informed, 
‘‘(2) the right to quality service, 
‘‘(3) the right to pay no more than the correct 
amount of tax, 
‘‘(4) the right to challenge the position of the 
Internal Revenue Service and be heard, 
‘‘(5) the right to appeal a decision of the Inter-
nal Revenue Service in an independent forum, 
‘‘(6) the right to finality, 
‘‘(7) the right to privacy, 
‘‘(8) the right to confidentiality, 
‘‘(9) the right to retain representation, and 
‘‘(10) the right to a fair and just tax system.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 3. 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— 
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(1) by inserting ‘‘or tax return preparer’’ after 
‘‘representative’’ each place it appears; and 
(2) 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.—Except as provided in para-
graph (2), a tax return preparer shall demonstrate 
minimum competency standards under this sub-
section 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 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-
parable examination, continuing education require-
ments, and background checks administered by the 
Secretary or any comparable State licensing pro-
gram from the applicable requirements of paragraph 
(1). Such exemption shall extend directly to individ-
uals who are supervised by such preparers and are 
not required to secure an identification number 
under section 6109(a)(4) of the Internal Revenue 
Code of 1986. 
‘‘(3) REINSTATEMENT OF REGISTERED TAX RE-
TURN
PREPARER
PROGRAM.—The Secretary shall 
issue regulations under this section reinstating the 
Registered Tax Return Preparer Program. Examina-
tion of tax return prepares under such program shall 
be limited to a one-time, basic individual income tax 
examination and the annual continuing education re-
quirement under such program shall not exceed 15 
hours.’’. 
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(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.— 
(1) IN
GENERAL.—Paragraph (4) of section 
6109(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(4) FURNISHING
IDENTIFYING
NUMBER
OF 
TAX RETURN PREPARER.— 
‘‘(A) IN GENERAL.—Any return or claim 
for refund prepared by a tax return preparer 
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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 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, 
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: 
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‘‘(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— 
‘‘(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 section shall take effect on the date which is 
180 days after the date of the enactment of this Act. 
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SEC. 4. REPORT. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of the Treasury (or the 
Secretary’s delegate) shall submit to Congress a report de-
tailing the implementation of tax preparer minimum 
standards under section 330(f) of title 31, United States 
Code (as added by this Act). 
Æ 
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