,,ii #aafth ,,congress #ast ,session ,s4 #aaib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #aa1 #bjai ,mr4 ,wyden 7for himself1 ,mr4 ,cardin1 ,mr4 ,bennet1 ,mr4 ,carper1 ,mr4 ,brown1 and ,ms4 ,cortez ,masto7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to set minimum standards for tax return preparers4 #a4 ,short title ,this ,act may be cited as the ,taxpayer ,protection and ,preparer ,proficiency ,act of #bjai4 #b4 ,regulation of tax return preparers 7a7 ,in general ,subsection 7a7 of section #ccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following3 7#a7 regulate-- 7,a7 the practice of representatives of persons before the ,department of the ,treasury2 and 7,b7 the practice of tax return preparers2 and 2 and 7#b7 in paragraph 7#b7-- 7,a7 by inserting or a tax return preparer to prepare tax returns after practice2 7,b7 by inserting or tax return preparer before demonstrate2 and 7,c7 by inserting or in preparing their tax returns1 claims for refund1 or documents in connection with tax returns or claims for refund after cases in subparagraph 7,d74 7b7 ,authority ,to sanction regulated tax return preparers ,subsection 7c7 of section #ccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking before the ,department2 7#b7 by inserting or tax return preparer after representative each place it appears2 and 7#c7 in paragraph 7#d71 by striking misleads or threatens and all that follows and inserting misleads or threatens-- 7,a7 any person being represented or any prospective person being represented2 or 7,b7 any person or prospective person whose tax return1 claim for refund1 or document in connection with a tax return or claim for refund1 is being or may be prepared4 4 7c7 ,minimum competency standards for tax return preparers ,section #ccj of title #ca1 ,united ,states ,code1 is amended by adding at the end the following new subsection3 7f7 ,tax return preparers 7#a7 ,in general ,any tax return preparer shall demonstrate minimum competency standards under this subsection by-- 7,a7 obtaining an identifying number for securing proper identification of such preparer as described in section #faji7;a77#d7 of the ,internal ,revenue ,code of #aihf2 7,b7 satisfying any examination and annual continuing education requirements as prescribed by the ,secretary2 and 7,c7 completing a background check administered by the ,secretary4 7#b7 ,exemption ,the ,secretary shall exempt tax return preparers who have been subject to comparable examination1 continuing education requirements1 and background checks administered by the ,secretary or any comparable ,state licensing program4 ,such exemption shall extend directly to individuals who are supervised by such preparers and are not required to secure an identification number under section #faji7;a77#d74 4 7d7 ,tax return preparer defined ,section #ccj of title #ca1 ,united ,states ,code1 as amended by subsection 7c71 is amended by adding at the end the following new subsection3 7g7 ,tax return preparer ,for purposes of this section-- 7#a7 ,in general ,the term tax return preparer has the meaning given such term under section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,tax return ,the term tax return has the meaning given to the term return under section #ffif7;e77#a7 of the ,internal ,revenue ,code of #aihf4 7#c7 ,claim for refund ,the term claim for refund has the meaning given such term under section #ffif7;e77#b7 of such ,code4 4 7e7 ,amendments with respect to identifying number 7#a7 ,in general ,section #faji7;a7 is amended by striking paragraph 7#d7 and inserting the following3 7#d7 ,furnishing identifying number of tax return preparer 7,a7 ,in general ,any return or claim for refund prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer1 his employer1 or both1 as may be prescribed4 ,for purposes of this paragraph1 the terms return and claim for refund have the respective meanings given to such terms by section #ffif7;e74 7,b7 ,exception ,subparagraph 7,a7 shall not apply to any tax return preparer who prepares a return or claim for refund under the supervision and direction of a tax return preparer who signs the return or claim for refund and is a certified public accountant1 an attorney or enrolled agent4 4 7#b7 ,clarification of rescission authority ,section #faji is amended by inserting after subsection 7d7 the following new subsection3 7e7 ,authority ,to rescind identifying number of tax return preparer 7#a7 ,in general ,the ,secretary may rescind an identifying number issued under subsection 7a77#d7 if-- 7,a7 after notice and opportunity for a hearing1 the preparer is shown to be incompetent or disreputable 7as such terms are used in subsection 7c7 of section #ccj of title #ca1 ,united ,states ,code72 and 7,b7 rescinding the identifying number would promote compliance with the requirements of this title and effective tax administration4 7#b7 ,records ,if an identifying number is rescinded under paragraph 7#a71 the ,secretary shall place in the file in the ,office of the ,director of ,professional ,responsibility the opinion of the ,secretary with respect to the determination1 including-- 7,a7 a statement of the facts and circumstances relating to the determination2 and 7,b7 the reasons for the rescission4 4 7f7 ,,gao study and report on the exchange of information between the ,,irs and ,state taxation authorities 7#a7 ,in general ,not later than #ah months after the date of the enactment of this ,act1 the ,comptroller ,general shall conduct a study and submit to ,congress a report on the sharing of information between the ,secretary of the ,treasury and ,state authorities1 as authorized under section #fajc7;d7 of the ,internal ,revenue ,code of #aihf1 regarding identification numbers issued to paid tax return preparers and return preparer minimum standards4 7#b7 ,increased information sharing ,the study and report described in paragraph 7#a7 shall include an analysis of the impact that increased information sharing between ,federal and ,state authorities would have on efforts to enforce minimum standards on paid tax return preparers4