Loading...

CPAs Endorse Bipartisan Push to Regulate Tax Return Preparers

July 6, 2021 by Dan McCue
CPAs Endorse Bipartisan Push to Regulate Tax Return Preparers

WASHINGTON – A bipartisan bill aimed at increasing oversight for paid tax return preparers has garnered the support of the American Institute of CPAs.

The bill, the Taxpayer Protection and Preparer Proficiency Act, was introduced last month by Rep. Jimmy Panetta, D-Calif., and Tom Rice, R-S.C.

Among other things, the bill would give the Treasury Department authority to regulate paid tax return preparers, would give the IRS authority to revoke an incompetent or fraudulent preparer’s Preparer Tax Identification Number, and would clarify that certain non-signing preparers — those preparing returns under the supervision of an attorney or COP — are not required to obtain a PTIN.

The bill also requires the Government Accountability Office to conduct a study or information sharing between the Treasury Department and state authorities regarding both PTINs and minimum standards for preparers.

Currently, no minimum federal competency standards for tax preparers exist. Tax preparers have no obligation to receive tax education, training, or competency requirements in tax return preparation, leaving families and individuals who rely on these services at risk.

Due to that deficiency, the IRS receives tens of thousands of complaints per year regarding insufficient services. While tax preparers may be prosecuted for fraud, current precedent bars prosecution for incompetence.

“Mistakes by incompetent tax preparers have led to many taxpayers getting audited or penalized through no fault of their own,” Panetta said. “My bipartisan legislation will help prevent such predicaments by allowing the IRS to regulate paid tax preparers and ensure that they are meeting minimum competency standards. Anybody who pays for their taxes to be prepared deserves to know that their tax preparers are professional, proficient, and principled and, if not, will be held accountable by the IRS.”

“The Taxpayer Protection and Preparer Proficiency Act will reduce error rates, lower risks for taxpayers, and help put a stop to the use of unqualified tax preparers,” Rice said. “Since the federal government dictates our obligation to file taxes, we ought to allow the IRS to ensure that those to whom taxpayers turn to for assistance are well qualified.”

The bill received the endorsement of the AICPA on Thursday.

“Ensuring that tax preparers are competent and ethical, and that the IRS has the tools it needs to conduct appropriate oversight, is critical to maintaining taxpayer confidence in our tax system and protecting the interests of the American taxpayer,”said Edwad Karl, the organization’s vice president.

In The News

Health

Voting

In The News

January 26, 2022
by Dan McCue
Pelosi to Seek Reelection Despite Risk of Losing House Majority

WASHINGTON — After weeks of writing farewells for House Democrats who’ve decided to forego bids for reelection, House Speaker Nancy... Read More

WASHINGTON — After weeks of writing farewells for House Democrats who’ve decided to forego bids for reelection, House Speaker Nancy Pelosi announced Tuesday that she has no plans of joining them in retirement. “While we have made progress, much more needs to be done to improve... Read More

January 26, 2022
by Dan McCue
House Democrats Release Mammoth Plan for Boosting Competition With China

WASHINGTON — House Democrats late Tuesday night released the America COMPETES Act, a mammoth, 2,912-page bill aimed at boosting high... Read More

WASHINGTON — House Democrats late Tuesday night released the America COMPETES Act, a mammoth, 2,912-page bill aimed at boosting high tech research and ending, once and for all, the semiconductor crisis that has caused rippling supply chain disruptions and put a serious, if temporary, crimp on... Read More

January 26, 2022
by Alexa Hornbeck
Village Designed for People With Dementia Reforms Traditional Nursing Homes

WEESP, Netherlands — Thirty years ago, the Hogeweyk stood as a four-story tower operating as a traditional nursing home in... Read More

WEESP, Netherlands — Thirty years ago, the Hogeweyk stood as a four-story tower operating as a traditional nursing home in an industrial area about 17 miles outside of central Amsterdam in the Netherlands.  “The way we delivered care back then, we weren’t happy with the outcomes,... Read More

January 26, 2022
by Dan McCue
Justice Stephen Breyer to Retire From Supreme Court

WASHINGTON — Justice Stephen Breyer, a pragmatic liberal who has served on the Supreme Court for nearly 28 years, is... Read More

WASHINGTON — Justice Stephen Breyer, a pragmatic liberal who has served on the Supreme Court for nearly 28 years, is expected to inform the White House today that he plans to step down at the end of this term. Pete Williams of NBC News was the... Read More

January 26, 2022
by Alexa Hornbeck
HHS Awards Grants to Help Reduce Health Care Provider Burnout

WASHINGTON — The U.S. Department of Health and Human Services, through the Health Resources and Services Administration, awarded $103 million... Read More

WASHINGTON — The U.S. Department of Health and Human Services, through the Health Resources and Services Administration, awarded $103 million in American Rescue Plan Funds to 45 grantees to help reduce health care provider burnout and promote mental health and wellness among the health care workforce.... Read More

EPA Acts on Environmental Justice in Three Gulf Coast States

WASHINGTON (AP) — The Environmental Protection Agency is taking a series of enforcement actions to address air pollution, unsafe drinking... Read More

WASHINGTON (AP) — The Environmental Protection Agency is taking a series of enforcement actions to address air pollution, unsafe drinking water and other problems afflicting minority communities in three Gulf Coast states, following a “Journey to Justice” tour by Administrator Michael Regan last fall. The agency will conduct... Read More

News From The Well
Exit mobile version