Bill · H.R. 1983· House(119-HR-1983)
Tax Return Preparer Accountability Act of 2025
- Introduced
- 3/10/2025
- Last activity
- 3/10/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Steve Cohen
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Tax Return Preparer Accountability Act of 2025 directs the Secretary of the Treasury to regulate the practice of tax return preparers. It establishes minimum competency standards, including obtaining an identifying number, satisfying examination and continuing education requirements, and completing a background check. The bill also grants the Secretary authority to sanction preparers who mislead or threaten people regarding their tax returns or claims for refund. Additionally, it mandates the implementation of an algorithm at the IRS to identify taxpayers at risk of economic hardship. Finally, the bill requires the creation of information security standards for all tax software providers.
Yes· 3 of 9
Does this give the federal government more power?+5
The bill expands the Secretary of the Treasury's authority to regulate tax return preparers.
Would households on low incomes be better off under this?+5
The bill implements measures to identify and protect taxpayers at risk of economic hardship.
Does this better protect the country from computer attacks?+5
The bill mandates new information security standards for all tax software providers.
The opposite
Would business owners be better off under this?-2
Tax preparers face increased regulatory burdens and compliance costs.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Competency and Oversight: Tax return preparers would be required to meet minimum competency standards, which include satisfying examinations, annual continuing education, and background checks (Section 2(c)(1)).
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Protection from Misconduct: The Secretary is granted authority to sanction preparers who mislead or threaten any person or prospective person regarding their tax returns, claims for refund, or related documents (Section 2(b)(3)).
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Support for Economically Vulnerable Taxpayers: The IRS is directed to implement an algorithm to identify taxpayers at high risk of economic hardship, notify them of available resources when they seek installment agreements, and determine if their debts should be excluded from automated collection treatments (Section 3(a)(1)-(4)).
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Enhanced Software Security: The Secretary of the Treasury must establish and annually update information security standards for all tax software providers (Section 3(b)).
Potential Negative Impacts for People
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Regulatory Burdens on Preparers: Tax return preparers must comply with several new requirements, including obtaining an identifying number, completing background checks, and satisfying examination and continuing education mandates (Section 2(c)(1)).
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Loss of Professional Standing: The Secretary has the authority to rescind a preparer's identifying number if they are shown to be incompetent or disreputable (Section 2(e)(1)(A)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Increases Federal Power+5Improves Due Process+2Improves Government Transparency+2
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+2Good For Business Owners-2
- National Security And Foreign Policy
- Improves Cybersecurity Defense+5
- Education And Technology
- Improves Data Privacy+4
- Social Issues And Justice
- Improves Poverty Reduction+4
- Economy And Finance
- Improves Consumer Protection+3
- 12/16/2025
- 1 Cosponsor added.
- 3/10/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
Eleanor NortonDemocrat · District of Columbia