S.Amdt. 4537

This amendment, submitted by Mr. Wyden, aims to establish the regulation of tax return preparers. It seeks to add these regulations to the bill S. 1383.

The purpose of the amendment is to:

• Regulate and Sanction: It allows for the regulation of tax return preparers and gives authority to sanction them if they mislead or threaten the people they represent or those whose tax documents they prepare.

• Set Standards: It requires tax return preparers to meet minimum competency standards by:

  • Obtaining an identifying number.
  • Passing examinations and annual continuing education.
  • Completing a background check.

• Provide Exemptions: The Secretary can exempt preparers who already meet comparable standards through the Secretary or a State licensing program.

• Manage Identification: It requires an identifying number on returns or claims for refund, unless the preparer is supervised by a certified public accountant, attorney, or enrolled agent. The Secretary also gains the power to rescind these identifying numbers if a preparer is found to be incompetent or disreputable.

• Study Information Sharing: It directs the Comptroller General to study and report to Congress on how the IRS and State authorities share information regarding preparer identification numbers and minimum standards.