,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gcda ,,in ,,the ,,house ,,of ,,representatives ,march #ca1 #bjbb,mr4 ,newhouse introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to move the taxpayer bill of rights to the front of the ,internal ,revenue ,code of #aihf1 to establish minimum competency standards for tax return preparers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,system ,transparency and ,accountability for the ,,irs ,act4 #b4 ,prominent display of taxpayer bill of rights 7a7 ,in general ,the ,internal ,revenue ,code of #aihf is amended by striking section #ghjc7;a77#c7 and by inserting the following before subtitle ,a3 ,in discharging his duties1 the ,commissioner of ,internal ,revenue shall ensure that employees of the ,internal ,revenue ,service are familiar with and act in accord with taxpayer rights as afforded by other provisions of this title1 including-- 7#a7 the right to be informed1 7#b7 the right to quality service1 7#c7 the right to pay no more than the correct amount of tax1 7#d7 the right to challenge the position of the ,internal ,revenue ,service and be heard1 7#e7 the right to appeal a decision of the ,internal ,revenue ,service in an independent forum1 7#f7 the right to finality1 7#g7 the right to privacy1 7#h7 the right to confidentiality1 7#i7 the right to retain representation1 and 7#aj7 the right to a fair and just tax system4 4 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #c4 ,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 7,c7 in subparagraph 7,c71 by inserting and minimum competency standards after necessary qualifications2 and 7,d7 in subparagraph 7,d71 by striking the period at the end and inserting or in preparing their tax returns1 claims for refund1 or documents in connection with tax returns or claims for refund44 7b7 ,authority ,to sanction regulated tax return preparers ,subsection 7c7 of section #ccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting or tax return preparer after representative each place it appears2 and 7#b7 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 ,minimum competency standards for tax return preparers 7#a7 ,in general ,except as provided in paragraph 7#b71 a 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 program from the applicable requirements of paragraph 7#a74 ,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#d7 of the ,internal ,revenue ,code of #aihf4 7#c7 ,reinstatement of registered tax return preparer program ,the ,secretary shall issue regulations under this section reinstating the ,registered ,tax ,return ,preparer ,program4 ,examination of tax return prepares under such program shall be limited to a one-time1 basic individual income tax examination and the annual continuing education requirement under such program shall not exceed #ae hours4 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 ,paragraph 7#d7 of section #faji7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 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 in section #ffif7;e74 7,b7 ,exception ,subparagraph 7,a7 shall not apply with respect to the preparation of any return or claim for refund by a tax return preparer if-- 7i7 such return or claim is prepared by such preparer while such preparer is employed by an attorney1 certified public accountant1 or enrolled agent firm1 and 7ii7 such preparer prepares such return or claim under the supervision and direction of a tax return preparer who signs such return or claim and is an attorney1 certified public accountant1 or enrolled agent4 4 7#b7 ,clarification of rescission authority ,section #faji of such ,code 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 ,code71 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 determination1 and 7,b7 the reasons for the rescission4 4 7#c7 ,effective date ,the amendments made by this section shall take effect on the date which is #ahj days after the date of the enactment of this ,act4 #d4 ,report ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall submit to ,congress a report detailing the implementation of tax preparer minimum standards under section #ccj7;f7 of title #ca1 ,united ,states ,code 7as added by this ,act74