Bill · H.R. 6323· House(119-HR-6323)
Taxpayer Protection and Preparer Proficiency Act
- Introduced
- 11/28/2025
- Last activity
- 11/28/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Jimmy Panetta
- Cosponsors
- - 2 - 1
- Introduced
- In Committee
What this bill would do
This legislation is titled the Taxpayer Protection and Preparer Proficiency Act. It amends the Internal Revenue Code to crack down on improper compliance and wrongdoing by tax return preparers. The bill sets stricter rules for tax preparer identification numbers and electronic filing numbers. It establishes new criminal and monetary penalties for tax preparers who alter returns, misuse identification numbers, or misappropriate taxpayer refunds. Additionally, the Secretary of the Treasury is directed to set up educational programs, background check suitability requirements, and error-correction opportunities for preparers. Finally, the bill requires the Government Accountability Office (GAO) to study federal and state tax information sharing.
Yes· 3 of 5
Does this give people more protection from unfair business practices?+5
The bill protects taxpayers from fraud by penalizing preparers who misappropriate refunds or negotiate taxpayer checks.
Would households on low incomes be better off under this?+4
The bill provides protections against the misappropriation of refunds which often impacts low-income taxpayers.
Does this make what the government does easier for the public to see?+4
The bill requires the IRS Commissioner to publish frequent errors and the top reasons for preparer discipline.
The opposite
Would union members be better off under this?-1
The bill imposes new educational and background check burdens on professional tax preparers.
Who it would affect, and how
Potential Positive Impacts for People
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Section 3(c) - Error Correction and Voluntary Compliance Program: The Secretary must establish a program allowing tax preparers an opportunity to correct missing or invalid identifying numbers or withdraw electronically submitted returns to avoid penalties, which helps prevent accidental penalties for honest mistakes.
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Section 3(d) - Criminal Penalties for Willful Misuse: This provision creates felony penalties for tax return preparers who willfully and intentionally misuse, steal, or use fake preparer identification numbers, helping protect everyday citizens from bad-acting preparers.
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Section 4(b) - Protection Against Refund Theft: This section penalizes tax preparers who cash a taxpayer's paper check or misappropriate an electronic refund transfer by forcing them to pay a penalty equal to the greater of $1,000 or the full amount of the check or transfer, shielding taxpayers from stolen refunds.
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Section 5(a) - Preparer Educational and Background Standards: By requiring background checks, personal tax compliance reviews, and up to 18 hours of annual education on ethics and tax law for certain preparers under Section 6109(e), the bill helps ensure that professionals handling the public's taxes are qualified.
Potential Negative Impacts for People
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Section 3(a) and Section 4(a) - Increased Financial Penalties: The bill raises existing monetary penalties and adds new $250 penalties for using invalid or unassigned identifying numbers or electronic filing identification numbers, which could increase financial burdens on small businesses and preparers who make administrative mistakes.
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Section 5(a) - Suspension and Revocation Powers: Under Section 6109(e)(5), the Secretary is granted the authority to suspend or revoke a preparer's tax identification number for a pattern of errors, incompetence, or disreputable conduct, which could restrict certain individuals from working as tax return preparers.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+4Good For Middle Class Households+3Good For Union Workers-1
- Economy And Finance
- Improves Consumer Protection+5Increases Corporate Taxes+1
- Governance And Ideology
- Improves Government Transparency+4
- 5/7/2026
- 1 Cosponsor added.
- 1/27/2026
- 1 Cosponsor added.
- 11/28/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Betty McCollumDemocrat · Minnesota
Terri SewellDemocrat · Alabama
W. SteubeRepublican · Florida