Tax preparers would be regulated under bipartisan Rice bill

U.S. Rep. Tom Rice (R-SC) recently introduced a bipartisan bill that would set minimum federal competency standards for America’s tax preparers. 

Rep. Rice on June 25 cosponsored the Taxpayer Protection and Preparer Proficiency Act, H.R. 4184, with bill sponsor U.S. Rep. Jimmy Panetta (D-CA) to permit the Internal Revenue Service (IRS) to regulate paid tax preparers and mandate that they meet minimum competency standards, according to a bill summary provided by Rep. Rice’s office.  

“Since the federal government dictates our obligation to file taxes,” Rep. Rice said, “we ought to allow the IRS to ensure that those who taxpayers turn to for assistance are well qualified.”

Currently, tax preparers are not obligated to receive tax education, training or competency requirements in tax return preparation, which has resulted in the IRS receiving tens of thousands of complaints per year regarding insufficient services, according to the summary. 

If enacted, H.R. 4184 would require tax preparers to demonstrate competency in preparing returns, claims for refund, and associated documents, the summary says, and would require preparers to complete continuing education requirements.

Additionally, the IRS would be given the authority to rescind the taxpayer identification numbers of preparers found to be incompetent or fraudulent.

“Folks across America rely on tax preparers and they expect that the preparers are qualified and competent,” said Rep. Rice. “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.”

The Association of International Certified Professional Accountants, the National Association of Enrolled Agents, and the National Association of Tax Professionals support H.R. 4184, which has been referred to the U.S. House Ways and Means Committee for consideration.