Steube, Panetta Introduce Taxpayer Protection and Preparer Proficiency Act
WASHINGTON — U.S. Representatives Greg Steube (R-Fla.) and Jimmy Panetta (D-Calif.) introduced this week the Taxpayer Protection and Preparer Proficiency Act. This bill would establish new penalties for tax preparers for misuse of identification numbers and failure to comply with Internal Revenue Service requirements.
“Americans trust that tax preparers will be honest and thorough with their work,” said Rep. Steube. “When that trust is betrayed, it can have catastrophic consequences for the families and small businesses that depend on their services. That is why I am joining with Representative Panetta to introduce the Taxpayer Protection and Preparer Proficiency Act. It’s time to raise the standards for the trained professionals who organize and file the taxes of the American people.”
“Innocent taxpayers should not be penalized for the mistakes or malevolence of their tax preparer,” said Rep. Panetta. “My bipartisan legislation will help taxpayers avoid paying the price for untrustworthy or incompetent tax preparers by ensuring they’re held accountable. If you pay someone else to help you prepare your taxes, you should feel confident and secure that your tax preparer is professional, proficient, and principled.”
Background: The Taxpayer Protection and Preparer Proficiency Act expands the definition of “return” while establishing penalties and fines for tax preparers who fail to provide valid ID numbers, misuse electronic filing ID numbers, or improperly alter returns. It makes it a felony to willfully misuse or misappropriate ID numbers with criminal penalties reaching up to two years imprisonment and maximum fines of $50,000 for individuals and $100,000 for corporations. The Secretary of the Treasury is also permitted to deny, revoke, or suspend the Preparer Tax Identification Numbers (PTINs) of tax preparers that either engage in misconduct or fail to meet licensing and professional requirements.
Read the full bill text here.
