H.R. 1570: Taxpayer Protection and Preparer Fraud Prevention Act of 2013

113th Congress, 2013–2015. Text as of Apr 15, 2013 (Introduced).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

I

113th CONGRESS

1st Session

H. R. 1570

IN THE HOUSE OF REPRESENTATIVES

April 15, 2013

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend title 31, United States Code, to provide for the regulation of tax return preparers.

1.

Short title

This Act may be cited as the Taxpayer Protection and Preparer Fraud Prevention Act of 2013 .

2.

Regulation of tax return preparers

(a)

In general

Section 330 of title 31, United States Code, is amended by adding at the end the following new subsection:

(e)
(1)

The Secretary of the Treasury may—

(A)

regulate tax return preparers who do not practice as representatives of persons before the Department of the Treasury; and

(B)

before licensing or certifying a person as a tax return preparer, require that the person demonstrate—

(i)

good character;

(ii)

good reputation;

(iii)

necessary qualifications to enable the person to provide to persons valuable service; and

(iv)

competency to perform the functions of a tax return preparer.

(2)

For purposes of this section, the term tax return preparer has the meaning given such term by section 7701(a)(36) of the Internal Revenue Code of 1986.

.

(b)

Disciplinary procedures

Subsection (b) of section 330 of title 31 of such Code is amended—

(1)

by inserting or tax return preparer after representative each place it appears, and

(2)

by inserting before the period at the end of paragraph (4) the following: , or for whom a return or claim for refund is being or is to be prepared.

(c)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

3.

Authority to impose a fee for licensing

(a)

In general

Subsection (a) of section 7528 of the Internal Revenue Code of 1986 is amended—

(1)

by inserting other similar requests, and at the end of paragraph (1), and

(2)

by amending paragraph (2) to read as follows:

(2)

regulating representatives and tax return preparers under section 330 of title 31, United States Code.

.

(b)

Average fee requirement

Paragraph (3) of section 7528(b) of such Code is amended by adding at the end the following flush sentence: The fees charged pursuant to the regulation of representatives and tax return preparers shall be reasonable, as determined by the Secretary..

(c)

Effective date

The amendments made by this section shall apply with respect to returns for taxable years ending after the date of the enactment of this Act.