,i #aaith ,,congress #ast ,session ,h4 ,r4 #aihc ,,in ,,the ,,house ,,of ,,representatives ,march #aj1 #bjbe,mr4 ,cohen introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend title #ca1 ,united ,states ,code1 to direct the ,secretary of the ,treasury to regulate tax return preparers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,tax ,return ,preparer ,accountability ,act of #bjbe4 #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 of the ,internal ,revenue ,code of #aihf 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 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 ,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 7#c7 ,effective date ,the amendments made by this subsection shall apply to returns filed after the date of the enactment of this ,act4 #c4 ,technology updates at ,internal ,revenue ,service 7a7 ,implementation of automated formula ,to identify taxpayers at risk of economic hardship ,as soon as practicable1 the ,secretary of the ,treasury 7or the ,secretary's delegate71 shall implement at the ,internal ,revenue ,service an algorithm that will enable the ,internal ,revenue ,service to-- 7#a7 identify taxpayers at high risk of economic hardship 7as defined by the ,secretary in regulations71 7#b7 ask questions of taxpayers who contact the ,internal ,revenue ,service regarding a balance due for purposes of identifying those at risk of hardship1 7#c7 in the case of taxpayers at risk of economic hardship who seek to enter into streamlined installment agreements online1 to notify such taxpayers of the resources available to them1 7#d7 determine whether to exclude taxpayers' debts from automated collection treatments such as the ,federal ,payment ,levy ,program1 the private debt collection program1 and passport certification1 and 7#e7 rank cases for collection priority4 7b7 ,security standards for tax software ,the ,secretary of the ,treasury 7or the ,secretary's delegate71 shall-- 7#a7 as soon as practicable1 promulgate such regulations and guidance as are necessary to prescribe information security standards for all tax software providers1 and 7#b7 annually thereafter1 review and update such standards4