As a means of bolstering taxpayer fraud protection, Senate Finance Committee Ranking Member Sen. Ron Wyden (D-OR) and Sen. Ben Cardin (D-MD) have introduced a measure designed to allow the IRS to require minimum standards for paid tax preparers.
The Taxpayer Protection and Preparer Proficiency Act requires preparers demonstrate competency in preparing returns, claims for refund and associated documents while also requiring preparers complete continuing education requirements.
“Inept or crooked paid preparers regularly exploit taxpayers to pad their bottom line,” Wyden said. “States like Oregon have led in this area by requiring minimum standards for preparers, and it’s critical that we restore federal standards to protect all taxpayers.”
The bill empowers the IRS to rescind taxpayer identification numbers (PTINs) of preparers found to be incompetent or fraudulent.
A Government Accountability Office (GAO) undercover investigation launched four years ago regarding paid preparers determined of 17 of 19 randomly selected sites, preparers failed to complete a return accurately due to serious mistakes or willful negligence.
“Our tax code is complicated and many families rely on outside help to figure it out,” Cardin said. “To protect taxpayers from incompetent or unscrupulous preparers, the IRS needs to ensure that preparers are qualified and held accountable. I’m pleased to join in support of this legislation, which restores meaningful and much-needed standards and oversight in the paid preparer industry.”