U.S. Rep. Ron Estes (R-KS) on June 25 introduced bipartisan legislation to expand the authority of the Internal Revenue Service (IRS) to repeal the identifying numbers of negligent or fraudulent tax return preparers.
“This bipartisan legislation will protect taxpayers by ensuring the IRS can revoke the certification for unqualified tax preparers,” said Rep. Estes. “As we work to simplify our tax code and support taxpayers, this is an important step to restore faith in tax preparers.”
Rep. Estes introduced H.R. 3466 with cosponsor U.S. Rep. Terri Sewell (D-AL) to permit the IRS to remove such tax preparers by revoking their valid Preparer Tax Identification Number (PTIN).
If enacted, H.R. 3466 would create a process to allow the IRS to repeal a PTIN based on negligence, fraud or abuse of the tax system, according to information provided by Rep. Estes’ office.
The IRS currently has limited authority to prevent so-called bad actors from becoming preparers or to rescind a PTIN, according to the information.
For instance, the IRS has identified almost 20,000 registered preparers who are potentially non-compliant with tax filing and payment obligations, but as of May 2017 has revoked 1,700 of 1.3 million total PTINs, the information says.
H.R. 3466 has been referred for consideration to the U.S. House Ways and Means Committee.