Title: Tax Return Preparer Accountability Act of 2017
Policy area: Taxation

Summary:
Tax Return Preparer Accountability Act of 2017
This bill requires the Department of the Treasury to regulate tax return preparers who are not otherwise subject to regulation. The bill authorizes Treasury to impose a $1,000 penalty for each federal tax return or other document prepared by a tax return preparer during a period in which such preparer: (1) is not in compliance with applicable Treasury regulations, or (2) is suspended or disbarred from acting as a tax return preparer under such regulations.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1077 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1077

 To amend title 31, United States Code, to direct the Secretary of the 
               Treasury to regulate tax return preparers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2017

  Mr. Cohen (for himself, Ms. Norton, Mrs. Carolyn B. Maloney of New 
 York, and Mr. Scott of Virginia) 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 Secretary of the 
               Treasury to regulate tax return preparers.

    Be it enacted by the Senate and House of Representatives 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 2017''.

SEC. 2. REGULATION OF TAX RETURN PREPARERS WHO ARE NOT REPRESENTATIVES 
              PRACTICING BEFORE THE DEPARTMENT OF THE TREASURY.

    (a) In General.--Subchapter II of chapter 3 of title 31, United 
States Code, is amended by inserting after section 330 the following 
new section:
``Sec. 330A. Tax return preparers who are not representatives 
              practicing before the Department of the Treasury
    ``(a) The Secretary of the Treasury shall, under regulations 
prescribed by the Secretary, regulate any tax return preparers who are 
not regulated by the Secretary under section 330.
    ``(b)(1) The Secretary may impose a penalty of $1,000 for each 
Federal tax return, document, or other submission prepared by a tax 
return preparer during a period in which the tax return preparer--
            ``(A) is not in compliance with the regulations promulgated 
        under this section, or
            ``(B) is suspended or disbarred from acting as a tax return 
        preparer under such regulations.
Any penalty imposed under the preceding sentence shall be in addition 
to any other penalty which may be imposed.
    ``(2) No penalty may be imposed under paragraph (1) with respect to 
any failure if it is shown that such failure is due to reasonable 
cause.
    ``(c) For purposes of this section:
            ``(1) The term `tax return preparer' has the meaning given 
        by section 7701(a)(36) of the Internal Revenue Code of 1986.
            ``(2) The terms `Secretary of the Treasury' and `Secretary' 
        mean the Secretary of the Treasury or the delegate of the 
        Secretary.''.
    (b) Clerical Amendment.--The table of sections for subchapter II of 
chapter 3 of title 31, United States Code, is amended by inserting 
after the item relating to section 330 the following new item:

``330A. Tax return preparers who are not representatives practicing 
                            before the Department of the Treasury.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to returns prepared for taxable years ending after 
the date of the enactment of this Act.
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