,i #aaith ,,congress #ast ,session ,h4 ,r4 #fcbc ,,in ,,the ,,house ,,of ,,representatives ,november #bh1 #bjbe,mr4 ,panetta 7for himself and ,mr4 ,steube7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to penalize improper compliance with certain taxpayer requirements1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,taxpayer ,protection and ,preparer ,proficiency ,act4 7b7 ,references to ,internal ,revenue ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment is expressed in terms of an amendment to a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,references to ,secretary ,for purposes of this ,act1 the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 #b4 ,penalties for tax return preparers who improperly alter returns 7a7 ,in general ,paragraph 7#a7 of section #ffif7;e7 is amended to read as follows3 7#a7 ,return ,the term return means-- 7,a7 any return of any tax imposed by this title1 7,b7 any administrative adjustment request under section #fbbg1 7,c7 any partnership adjustment tracking report under section #fbbf7;b77#d77;,a71 and 7,d7 any other document purporting to be a return1 request1 or report described in subparagraphs 7,a7 through 7,c74 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of enactment of this ,act4 #c4 ,penalties for invalid or appropriated preparer identification numbers 7a7 ,in general ,section #ffie is amended-- 7#a7 by striking subsection 7c7 and inserting the following3 7c7 ,failure ,to furnish valid identifying number 7#a7 ,in general 7,a7 ,penalty ,any person who is a tax return preparer with respect to any return or claim for refund and who fails to furnish an identifying number which complies with section #faji7;a77#d77;,a7 with respect to such return or claim shall pay a penalty of #bej for such failure4 7,b7 ,non-compliance ,for purposes of this paragraph1 an identifying number shall be deemed to not comply with section #faji7;a77#d77;,a7 if such identifying number-- 7i7 is assigned to another person1 7ii7 does not exist1 7iii7 is inactive or expired1 7iv7 has been withdrawn1 7v7 is suspended or has been revoked1 or 7vi7 is otherwise invalid for use by the tax return preparer4 7#b7 ,exception ,the penalty imposed under paragraph 7#a7 shall not apply if it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#c7 ,limitation ,the maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed #ge1jjj4 1 7#b7 by redesignating subsection 7h7 as subsection 7i71 7#c7 by inserting after subsection 7g7 the following new subsection3 7h7 ,use of invalid or appropriated electronic filing identification number 7#a7 ,in general ,any person who is an electronic return originator with respect to any return or claim for refund who fails to use1 with respect to such return or claim1 an electronic filing identification number which is assigned to such person by the ,secretary1 shall pay a penalty of #bej for such failure1 unless it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,electronic return originator 7i7 ,in general ,the term electronic return originator means a person who originates the electronic submission of #a or more returns or claims for refund on behalf of other taxpayers4 7ii7 ,exceptions ,the term electronic return originator shall not include a person merely because such person originates an electronic submission described in clause 7i7-- 7,i7 by furnishing mechanical assistance to a person described in such subclause1 7,,ii7 at the direction of an employer 7or of an officer or employee of the employer7 by whom such person is regularly and continuously employed1 7,,iii7 as a fiduciary1 or 7,,iv7 in response to a determination that directly or indirectly affects the tax liability of a taxpayer4 7,b7 ,electronic filing identification number 7i7 ,in general ,the term electronic filing identification number means an identification number assigned by the ,secretary to a person authorized to file returns in electronic format on behalf of other taxpayers4 7ii7 ,suspension or revocation ,in the case of any electronic filing identification number which has been suspended or revoked by the ,secretary1 such number shall not be deemed valid for purposes of paragraph 7#a74 1 and 7#d7 in subsection 7i77#a71 as redesignated by paragraph 7#b71 by striking and 7g7 and inserting 7g71 and 7h74 7b7 ,modification of definition of tax return preparer ,section #ggja7;a77#cf7 is amended-- 7#a7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,the term tax return preparer means any person who prepares for compensation1 or who employs one or more persons to prepare for compensation1 any return of tax imposed by this title1 any document purporting to be a return of tax imposed by this title1 or any claim for refund of tax imposed by this title4 ,for purposes of the preceding sentence1 the preparation of a substantial portion of a return1 document purporting to be a return1 or claim for refund shall be treated as if it were the preparation of such return1 document purporting to be a return1 or claim for refund4 1 and 7#b7 in subparagraph 7,b7-- 7,a7 in clause 7ii71 by striking return or claim for refund and inserting return1 document purporting to be a return1 or claim for refund1 and 7,b7 in clause 7iii71 by striking return or claim for refund and inserting return1 document purporting to be a return1 or claim for refund4 7c7 ,prevention of inadvertent errors involving identifying numbers 7#a7 ,in general ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall establish a program to improve voluntary compliance with respect to requirements under subsections 7c7 and 7h7 of section #ffie of the ,internal ,revenue ,code of #aihf 7as amended by this section7 and avoid the imposition of penalties under such subsections4 7#b7 ,opportunity to correct ,for purposes of the program described in paragraph 7#a71 the ,secretary shall-- 7,a7 prior to acceptance for processing1 identify-- 7i7 any return or claim for refund which has been electronically submitted and does not include an identifying number which complies with section #faji7;a77#d77;,a7 of the ,internal ,revenue ,code of #aihf1 and 7ii7 any return or claim for refund which has been electronically submitted and does not include an electronic filing identification number 7as defined in section #ffie7;h77#b77;,b7 of such ,code71 and 7,b7 provide an opportunity for the person who submitted such return or claim for refund to avoid imposition of a penalty under subsection 7c7 or 7h7 of section #ffie of such ,code1 as applicable1 if-- 7i7 such return or claim for refund is withdrawn1 or 7ii7 the correct identifying number or electronic filing identification number is provided4 7d7 ,criminal penalty 7#a7 ,in general ,part ,i of subchapter ,a of chapter #ge is amended by adding at the end the following new section3 #gbah4 ,willful misuse or misappropriation of identifying number 7a7 ,in general ,any tax return preparer who1 with respect to any return1 document purporting to be a return1 or claim for refund-- 7#a7 willfully fails to furnish a valid preparer tax identification number with intent to evade or defeat the application of any requirement under any provision of this title which requires such preparer to obtain and furnish such number1 7#b7 willfully furnishes a preparer tax identification number which-- 7,a7 does not exist1 7,b7 is inactive or expired1 7,c7 has been withdrawn1 7,d7 is suspended or has been revoked1 or 7,e7 is otherwise invalid for use by such tax return preparer1 or 7#c7 willfully furnishes a preparer tax identification number which is assigned to another person1 shall1 in addition to any other penalties provided by law1 be guilty of a felony and1 upon conviction thereof1 shall be fined not more than #ej1jjj 7#ajj1jjj in the case of a corporation71 or imprisoned not more than #b years1 or both1 together with the costs of prosecution4 7b7 ,preparer tax identification number ,the term preparer tax identification number means an identifying number described in section #faji7;a77#d77;,a74 4 7#b7 ,clerical amendment ,the table of sections for part ,i of subchapter ,a of chapter #ge is amended by adding at the end the following new item3 ,sec4 #gbah4 ,willful misuse or misappropriation of identifying number4 4 7e7 ,effective date ,the amendments made by this section shall apply to returns or claims for refund filed after the date which is #ah months after the date of enactment of this ,act4 #d4 ,penalties for improper tax preparation or misappropriation of refunds 7a7 ,other assessable penalties with respect to the preparation of tax returns for other persons ,section #ffie1 as amended by the preceding provisions of this ,act1 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ej1jjj1 7#b7 in subsection 7b7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ge1jjj1 7#c7 in subsection 7d7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ej1jjj1 7#d7 in subsection 7e7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ge1jjj1 7#e7 in subsection 7g71 by striking #ejj and inserting #a1jjj1 and 7#f7 in subsection 7i77#a7-- 7,a7 by striking #bjad and inserting #bjbd1 and 7,b7 by striking calendar year #bjac and inserting calendar year #bjbc4 7b7 ,misappropriation of electronic funds transfer 7#a7 ,in general ,subsection 7f7 of section #ffie is amended to read as follows3 7f7 ,negotiation of check2 misappropriation 7#a7 ,in general ,any person who is a tax return preparer who-- 7,a7 endorses or otherwise negotiates 7directly or through an agent7 any check made in respect of the taxes imposed by this title which is issued to a taxpayer 7other than the tax return preparer71 or 7,b7 misappropriates any refund 7or advance payment with respect to a refundable credit71 or any portion thereof1 issued to any taxpayer through an electronic funds transfer1 shall pay a penalty in an amount determined under paragraph 7#b74 7#b7 ,penalty ,the amount of the penalty determined under this paragraph shall1 with respect to each check or transfer described in paragraph 7#a71 be equal to the greater of-- 7,a7 #a1jjj1 or 7,b7 the full amount of such check or transfer4 7#c7 ,exception ,paragraph 7#a77;,a7 shall not apply with respect to the deposit by a bank 7within the meaning of section #eha7 of the full amount of the check in the taxpayer's account in such bank for the benefit of the taxpayer4 4 7#b7 ,conforming amendment ,section #ffie7;i77#a7 is amended by striking 7f71 and inserting 7f77#b77;,a714 #e4 ,authority to deny1 revoke1 or suspend preparer tax identification numbers 7a7 ,in general ,section #faji is amended-- 7#a7 in subsection 7a71 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 which is prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer1 their employer1 or both1 as may be prescribed4 7,b7 ,exception for supervised preparer ,subparagraph 7,a7 shall not apply with respect to any tax return preparer who prepares any return or claim for refund if such preparer is-- 7i7 employed by a specified practitioner1 and 7ii7 under the supervision and direction of a tax return preparer who-- 7,i7 includes their identifying number 7as described in subparagraph 7,a77 on such return or claim1 7,,ii7 signs such return or claim1 and 7,,iii7 is a specified practitioner4 7,c7 ,suspension or revocation ,in the case of any identifying number which has been suspended or revoked by the ,secretary under subsection 7e71 such number shall not be deemed valid for purposes of subparagraph 7,a74 7,d7 ,definitions ,for purposes of this section-- 7i7 ,specified practitioner ,the term specified practitioner means a certified public accountant1 attorney1 or enrolled agent-- 7,i7 who is in good standing and authorized to represent persons before the ,department of the ,treasury under section #ccj of title #ca1 ,united ,states ,code1 and 7,,ii7 whose professional license or certification has not been revoked4 7ii7 ,return2 claim for refund ,the terms return and claim for refund have the respective meanings given to such terms by section #ffif7;e74 1 and 7#b7 by inserting after subsection 7d7 the following3 7e7 ,identifying number of tax return preparer 7#a7 ,in general ,the ,secretary shall maintain a program for administration of preparer tax identification numbers required under subsection 7a77#d71 which shall include restrictions on the issuance of such numbers to any individual other than an individual who-- 7,a7 meets the suitability requirements of paragraph 7#b7 and the education requirements of paragraph 7#c71 7,b7 meets the state program requirements of paragraph 7#d71 or 7,c7 is a specified practitioner4 7#b7 ,demonstration of suitability 7,a7 ,in general ,an individual meets the suitability requirements of this paragraph if such individual has demonstrated to the ,secretary the individual's suitability to be a tax return preparer by-- 7i7 providing such information as the ,secretary determines necessary1 and 7ii7 undergoing a background check1 including a review by the ,secretary regarding compliance with personal tax obligations4 7,b7 ,conduct demonstrating lack of suitability ,for purposes of subparagraph 7,a71 an individual shall be deemed to have failed to demonstrate their suitability to be a tax return preparer if-- 7i7 any license or registration issued to such individual by a ,state to prepare tax returns has been suspended or revoked by such ,state1 or 7ii7 the ,secretary determines that such individual is described in clauses 7ii7 through 7vi7 of paragraph 7#e77;,a74 7,c7 ,regulations and guidance ,the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this paragraph4 7,d7 ,prohibition on examinations ,for purposes of subparagraph 7,a71 except as provided in paragraph 7#c77;,c77iii71 the ,secretary may not require an examination as a prerequisite for the assignment or renewal of a preparer tax identification number4 7,e7 ,grandfathering of prior background checks ,for purposes of subparagraph 7,a77ii71 in the case of an individual who has undergone a background check prior to the date of enactment of this subsection1 the ,secretary may deem such individual to have satisfied the requirement under such subparagraph4 7#c7 ,educational programs 7,a7 ,in general ,an individual meets the education requirements of this paragraph if such individual completes a specified number of hours of educational programs on ethics1 professional responsibility1 and tax law 7including recently enacted legislation7 as may be required by the ,secretary prior to the assignment or renewal of a preparer tax identification number4 7,b7 ,additional educational requirements for renewal ,the ,secretary may require any individual seeking the renewal of a preparer tax identification number to complete educational programs in addition to those required under subparagraph 7,a74 ,any educational programs required under this subparagraph shall be based on-- 7i7 a review of returns which include the preparer tax identification number of such preparer1 and 7ii7 any errors identified by the ,secretary as part of the review described in clause 7i74 7,c7 ,other requirements ,for purposes of this paragraph1 the ,secretary-- 7i7 may not require a tax return preparer to annually complete more than #ah hours of educational programs1 7ii7 shall require that any educational program include written materials which satisfy such standards as are established by the ,secretary1 7iii7 may require that any educational program include a method to ensure that the tax return preparer attended the program and sufficiently understood the material presented1 and 7iv7 may not direct any educational program to be completed through a specific provider4 7,d7 ,notice of failure to timely complete requirements ,the ,secretary shall provide any tax return preparer who fails to complete the requirements of this paragraph notice of such failure and a period in which to cure such failure4 7,e7 ,publication of approved courses ,the ,secretary shall publish1 on the public website of the ,internal ,revenue ,service-- 7i7 a list of educational programs which have been determined by the ,secretary to satisfy the requirement under clause 7ii7 of subparagraph 7,c7 7and1 if applicable1 the requirement under clause 7iii7 of such subparagraph71 including the providers of such programs1 and 7ii7 any such requirements as the ,secretary deems necessary to impose with respect to any additional programs required under subparagraph 7,b74 7#d7 ,exemption 7,a7 ,in general ,subject to subparagraph 7,b71 any individual meets the state program requirements of this paragraph if such individual maintains a valid ,state license or registration issued by a ,state licensing program or ,state registration program 7including ,state tax education councils7 which includes examination1 education1 and background check requirements that are determined by the ,secretary 7on the basis of such information as is provided by the taxpayer or ,state program7 to be comparable to the suitability requirements described in paragraph 7#b7 and the education requirements described in paragraph 7#c74 7,b7 ,grandfathering of certain programs ,for purposes of subparagraph 7,a71 with respect to determining whether a ,state licensing program or ,state registration program 7including ,state tax education councils7 includes examination1 education1 and background check requirements which are comparable to the suitability requirements described in paragraph 7#b7 and the education requirements described in paragraph 7#c71 such determination shall be made by the ,secretary without regard to whether such requirements were included in such program at the time that such individual was licensed or registered under such program1 provided that such requirements are1 as of the date that such individual requested assignment or renewal of a preparer tax identification number under this subsection1 presently included in such program4 7#e7 ,authority to revoke or suspend preparer tax identification number 7,a7 ,in general ,the ,secretary may suspend or revoke a preparer tax identification number if1 after notice and opportunity for a hearing1 the ,secretary makes a determination that the tax return preparer-- 7i7 has not met-- 7,i7 the suitability requirements of paragraph 7#b7 and the education requirements of paragraph 7#c71 or 7,,ii7 the ,state program requirements of paragraph 7#d71 7ii7 is incompetent1 as demonstrated by a repeated pattern of errors in returns that were prepared by such preparer or individuals who were supervised by such preparer 7as described in subsection 7a77#d77;,b77 which affected the determination of tax liability in such returns1 7iii7 is disreputable1 as demonstrated by-- 7,i7 giving false or misleading information under paragraph 7#b77;,a77i71 7,,ii7 failure to comply with personal tax obligations1 7,,iii7 revocation or suspension of any license or registration issued by a ,state for the preparation of tax returns1 7,,iv7 conviction of any criminal offense-- 7aa7 involving dishonesty or breach of trust1 or 7bb7 which is punishable under this title1 7,v7 a final determination of liability for a penalty pursuant to section #ffid1 #ffie7;h71 #fgjj1 #fgja1 or #fgjb1 or 7,,vi7 any conduct similar to the conduct described in subclauses 7,i7 through 7,v71 7iv7 in the case of a person subject to regulation under section #ccj of title #ca1 ,united ,states ,code1 or regulations prescribed thereunder1 has violated the requirements under such section or such regulations1 7v7 with intent to defraud1 willfully and knowingly misleads or threatens-- 7,i7 the person whose return or claim for refund is being prepared1 or 7,,ii7 a prospective person seeking for a return or claim for refund to be prepared1 or 7vi7 has engaged in conduct 7as identified in regulations or guidance issued by the ,secretary7 which is similar to the conduct described in clauses 7i7 through 7v7 and that the denial1 suspension1 or revocation of such number would promote compliance with the requirements of this title and effective tax administration4 7,b7 ,monetary penalty 7i7 ,in general ,in addition to1 or in lieu of1 any suspension or revocation of a preparer tax identification number under subparagraph 7,a71 the ,secretary may impose a penalty in any amount not exceeding-- 7,i7 in the case of any determination made by the ,secretary with respect to a tax return preparer which is described in subparagraph 7,a7 7with the exception of clause 7v7 of such subparagraph71 #a1jjj with respect to each such determination1 and 7,,ii7 in the case of any determination made by the ,secretary with respect to a tax return preparer which is described in subparagraph 7,a77v71 #e1jjj with respect to each such determination4 7ii7 ,reduction ,any penalty imposed under clause 7i7 shall be reduced by the amount of any penalty imposed under section #ffid1 #ffie1 #fgjj1 #fgja1 or #fgjb with regard to the same conduct4 7iii7 ,adjustment for inflation 7,i7 ,in general ,in the case of any penalty imposed during any calendar year beginning after #bjbe1 the #a1jjj amount in clause 7i77,i7 and the #e1jjj amount in clause 7i77,,ii7 shall each be increased by an amount equal to-- 7aa7 such dollar amount1 multiplied by 7bb7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,,ii7 ,rounding ,if any amount determined under subclause 7,i7 is not a multiple of #ajj1 such amount shall be rounded to the nearest multiple of #ajj4 7,c7 ,reinstatement ,the ,secretary shall1 through regulations or other guidance1 establish procedures to allow any tax return preparer whose preparer tax identification number has been suspended or revoked pursuant to subparagraph 7,a7 to have such number reissued 7or1 in the case of a suspension1 for such suspension to be terminated71 provided that such preparer demonstrates1 to the satisfaction of the ,secretary1 that-- 7i7 the conduct described in such paragraph which was the basis for such suspension or revocation has been sufficiently addressed or resolved 7such as through completion of educational programs described in paragraph 7#c7 or reinstatement of a license issued by a ,state for the preparation of tax returns71 and 7ii7 effective tax administration would be promoted by terminating the suspension of such number or reissuing such number to such preparer4 7,d7 ,preliminary suspension 7i7 ,in general ,after notice and opportunity to respond1 the ,secretary may suspend the preparer tax identification number of a tax return preparer for a period of not greater than #ahj days if the ,secretary determines that-- 7,i7 such tax return preparer has engaged in any conduct described in clauses 7i7 through 7vi7 of subparagraph 7,a71 and 7,,ii7 such suspension is necessary to prevent serious economic harm to taxpayers or serious impairment of effective tax administration1 such as to prevent the filing of fraudulent returns or claims for refund4 7ii7 ,limitation ,for purposes of clause 7i71 if the preparer tax identification number of a tax return preparer has been suspended pursuant to such clause #b times during any #e-year period1 the ,secretary may not issue an additional suspension pursuant to such clause with respect to such preparer during such period unless such suspension is subsequent to a determination by the ,secretary to suspend or revoke the preparer tax identification number of such preparer pursuant to subparagraph 7,a74 7,e7 ,regulations ,not later than #bd months after the date of enactment of this subsection1 the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this paragraph1 including-- 7i7 guidelines that identify the particular penalty applicable to any conduct described in subparagraph 7,a71 and 7ii7 the manner of notice and opportunity to respond for purposes of subparagraph 7,d74 7#f7 ,appeal ,in the case of any tax return preparer for whom the ,secretary has made a determination-- 7,a7 that such preparer has not met the requirements of paragraphs 7#b7 and 7#c7 or of paragraph 7#d7 and that issuance of a preparer tax identification number should be denied1 7,b7 under paragraph 7#e77;,a7 that the preparer tax identification number for such preparer should be suspended or revoked1 or 7,c7 that a penalty should be imposed pursuant to paragraph 7#e77;,b71 such preparer shall be provided with an opportunity to appeal such determination to the ,internal ,revenue ,service ,independent ,office of ,appeals pursuant to procedures 7as established by the ,secretary through regulations or other guidance7 which are similar to the procedures provided under section #ccj of title #ca1 ,united ,states ,code1 or regulations prescribed thereunder4 7#g7 ,disclosure of final determinations 7,a7 ,in general ,in the case of any final determination with respect to the extended suspension1 revocation1 reissuance1 or termination of an extended suspension of a preparer tax identification number under this subsection1 not later than #cj days following such determination1 the ,secretary shall publish such determination on the public website of the ,internal ,revenue ,service1 which shall include-- 7i7 a statement of the facts and circumstances relating to such determination1 and 7ii7 the reasons for the determination4 7,b7 ,extended suspension ,for purposes of subparagraph 7,a71 the term extended suspension means a suspension issued by the ,secretary pursuant to paragraph 7#e77;,a7 for a period of greater than #ahj days4 7#h7 ,preparer tax identification number ,for purposes of this subsection1 the term preparer tax identification number means an identifying number described in subsection 7a77#d77;,a74 4 7b7 ,information returns of tax return preparers ,section #fjfj is amended-- 7#a7 by redesignating subsection 7c7 as subsection 7d71 and 7#b7 by inserting after subsection 7b7 the following3 7c7 ,additional information from supervisors ,in the case of a person required to make a return under subsection 7a7 who is described in section #faji7;a77#d77;,b77ii77,,iii71 such person shall include in such return-- 7#a7 the name and taxpayer identification number of any tax return preparer under their supervision and direction who1 pursuant to subparagraph 7,b7 of section #faji7;a77#d71 is exempted from the requirement under subparagraph 7,a7 of such section1 7#b7 with respect to each tax return preparer described in paragraph 7#a71 whether such preparer is employed by such person as of the date on which such return is made1 and 7#c7 such other information as the ,secretary determines appropriate4 4 7c7 ,determinations regarding practice before the ,department ,section #ccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7e7 as subsection 7f72 and 7#b7 by inserting after subsection 7d7 the following3 7e7 ,disclosure of final determinations ,in the case of any final determination under subsection 7c7 or 7d71 not later than #cj days following such determination1 the ,secretary shall publish such determination on a public website1 which shall include-- 7#a7 a statement of the facts and circumstances relating to such determination1 and 7#b7 the reasons for the determination4 4 7d7 ,disclosure relating to misconduct by practitioners and tax return preparers 7#a7 ,in general ,section #fajc7k7 is amended by adding at the end the following new paragraph3 7#af7 ,disclosure relating to misconduct by practitioners and tax return preparers ,under such procedures as the ,secretary may prescribe1 the ,secretary may disclose returns and return information to the extent the ,secretary determines it is necessary to publish determinations pursuant to section #faji7;e77#g7 and section #ccj7;e7 of title #ca1 ,united ,states ,code1 provided that such disclosure is redacted to remove-- 7,a7 any name1 address1 or other identifying information with respect to any persons other than the representative or tax return preparer who is the subject of such determination1 and 7,b7 such other information as the ,secretary determines appropriate to protect the privacy of such persons4 4 7#b7 ,conforming amendment ,section #fajc7p77#c77;,a7 is amended by striking or 7#i7 and inserting 7#i71 or 7#af74 7e7 ,requirement ,to include identifying number for paid preparer of offer-in-,compromise 7#a7 ,in general ,section #faji7;a7 is amended by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,furnishing identifying number for offer-in-compromise ,any offer-in-compromise 7as described in section #gabb7 which has been prepared by any person for compensation shall include such identifying number as may be prescribed for securing proper identification of such person4 4 7#b7 ,penalty ,section #gabb is amended by adding at the end the following new subsection3 7h7 ,failure ,to furnish identifying number 7#a7 ,in general 7,a7 ,penalty ,any person who prepares an offer-in-compromise for compensation and who fails to include an identifying number which complies with section #faji7;a77#e7 with respect to such offer-in-compromise shall pay a penalty of #bej for such failure4 7,b7 ,non-compliance ,for purposes of this paragraph1 an identifying number shall be deemed to not comply with section #faji7;a77#e7 if such identifying number-- 7i7 is assigned to another person1 7ii7 does not exist1 7iii7 is inactive or expired1 7iv7 has been withdrawn1 7v7 is suspended or has been revoked1 or 7vi7 is otherwise invalid for use by the preparer4 7,c7 ,adjustment for inflation 7i7 ,in general ,in the case of any documents filed during any calendar year beginning after #bjbe1 the #bej amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any amount determined under clause 7i7 is not a multiple of #aj1 such amount shall be rounded to the nearest multiple of #aj4 7#b7 ,exception ,the penalty imposed under paragraph 7#a7 shall not apply if it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#c7 ,limitation 7,a7 ,in general ,the maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed #ge1jjj4 7,b7 ,adjustment for inflation 7i7 ,in general ,in the case of any penalty imposed during any calendar year beginning after #bjbe1 the #ge1jjj amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any amount determined under clause 7i7 is not a multiple of #a1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj4 7#d7 ,other applicable rules ,rules similar to the rules of section #ffif shall apply for purposes of this subsection4 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 of the ,united ,states shall conduct a study and submit to ,congress a report on the sharing of information between the ,secretary and ,state authorities1 as authorized under subsections 7d7 and 7k77#e7 of section #fajc 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 7g7 ,publication of common errors and penalties ,not later than #cf months after the date of the enactment of this ,act and annually thereafter1 the ,commissioner of the ,internal ,revenue shall publish on the public website of the ,internal ,revenue ,service-- 7#a7 the #aj most frequent errors found on tax returns which were prepared by tax return preparers 7as defined in section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf7 during the preceding calendar year1 and 7#b7 with respect to the preceding calendar year1 the top #aj reasons that tax return preparers were-- 7,a7 subject to penalties imposed under the ,internal ,revenue ,code of #aihf1 or 7,b7 otherwise disciplined under section #faji of such ,code or section #ccj of title #ca1 ,united ,states ,code4 7h7 ,rule of construction ,nothing in this section 7or amendment made by this section7 shall be construed to require the ,secretary to eliminate or terminate any existing program or authority-- 7#a7 which1 pursuant to section #ccj of title #ca1 ,united ,states ,code1 permits a tax return preparer to represent a taxpayer before the ,department of the ,treasury in cases in which such preparer prepared and signed the return of tax1 or 7#b7 for publication of a public database on the website of the ,internal ,revenue ,service of tax return preparers who have satisfied the requirements for issuance of a preparer tax identification number 7as defined in section #faji7;e77#h7 of the ,internal ,revenue ,code of #aihf74 7i7 ,effective date 7#a7 ,in general ,the amendments made by this section shall take effect on the date which is #ahj days after the date of enactment of this ,act4 7#b7 ,transition rules for educational requirements for tax return preparers 7,a7 ,annual ,filing ,season ,program ,in the case of any tax return preparer who1 as of the date of enactment of this ,act1 has received a record of completion with respect to the ,annual ,filing ,season ,program established by the ,internal ,revenue ,service1 such tax return preparer shall be deemed to have satisfied the education requirements of section #faji7;e77#c7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 for the calendar year for which such record of completion applies4 7,b7 ,approved courses ,in the case of any entity which1 as of the date of enactment of this ,act1 is approved to provide continuing education for purposes of the ,annual ,filing ,season ,program established by the ,internal ,revenue ,service1 such entity shall be deemed to satisfy the applicable requirements under section #faji7;e77#c7 of the ,internal ,revenue ,code of #aihf until the date on which the ,secretary has-- 7i7 issued such regulations or other guidance as the ,secretary determines necessary for purposes of establishing standards for educational programs under such section1 and 7ii7 pursuant to subparagraph 7,e7 of such section1 published a list of educational programs which have been determined by the ,secretary to satisfy the applicable requirements under such section4