,i #aai? ,,congress #a/ ,session ,h4 ,r4 #fcbc ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,novemb] #bh1 #bjbe,mr4 ,panetta 7= himself & ,mr4 ,/eube7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to p5alize improp] compliance ) c]ta9 taxpay] requirem5ts1 & = o!r purposes4 #a4 ,%ort title2 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,taxpay] ,protection & ,prep>] ,pr(ici5cy ,act4 7b7 ,ref]5ces to ,int]nal ,rev5ue ,code ,except z o!rwise expressly provid$1 :5ev] 9 ?is ,act an am5dm5t is express$ 9 t]ms ( an am5dm5t to a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to a section or o!r provision ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,ref]5ces to ,secret>y ,= purposes ( ?is ,act1 ! t]m ,secret>y means ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate4 #b4 ,p5alties = tax return prep>]s :o improp]ly alt] returns 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #ffif7;e7 is am5d$ to read z foll[s3 7#a7 ,return ,! t]m return means-- 7,a7 any return ( any tax impos$ by ?is title1 7,b7 any adm9i/rative adju/m5t reque/ "u section #fbbg1 7,c7 any p>tn]%ip adju/m5t track+ report "u section #fbbf7;b77#d77;,a71 & 7,d7 any o!r docum5t purport+ to be a return1 reque/1 or report describ$ 9 subp>agraphs 7,a7 ?r\gh 7,c74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect on ! date ( enactm5t ( ?is ,act4 #c4 ,p5alties = invalid or appropriat$ prep>] id5tification numb]s 7a7 ,9 g5]al ,section #ffie is am5d$-- 7#a7 by /rik+ subsection 7c7 & ins]t+ ! foll[+3 7c7 ,failure ,to furni% valid id5tify+ numb] 7#a7 ,9 g5]al 7,a7 ,p5alty ,any p]son :o is a tax return prep>] ) respect to any return or claim = refund & :o fails to furni% an id5tify+ numb] :i* complies ) section #faji7;a77#d77;,a7 ) respect to su* return or claim %all pay a p5alty ( #bej = su* failure4 7,b7 ,non-compliance ,= purposes ( ?is p>agraph1 an id5tify+ numb] %all be deem$ to n comply ) section #faji7;a77#d77;,a7 if su* id5tify+ numb]-- 7i7 is assign$ to ano!r p]son1 7ii7 does n exi/1 7iii7 is inactive or expir$1 7iv7 has be5 )drawn1 7v7 is susp5d$ or has be5 revok$1 or 7vi7 is o!rwise invalid = use by ! tax return prep>]4 7#b7 ,exception ,! p5alty impos$ "u p>agraph 7#a7 %all n apply if x is %[n t su* failure is due to reasonable cause & n due to willful neglect4 7#c7 ,limitation ,! maximum p5alty impos$ "u ?is subsection on any p]son ) respect to docum5ts fil$ dur+ any cal5d> ye> %all n exce$ #ge1jjj4 1 7#b7 by r$esignat+ subsection 7h7 z subsection 7i71 7#c7 by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,use ( invalid or appropriat$ electronic fil+ id5tification numb] 7#a7 ,9 g5]al ,any p]son :o is an electronic return orig9ator ) respect to any return or claim = refund :o fails to use1 ) respect to su* return or claim1 an electronic fil+ id5tification numb] :i* is assign$ to su* p]son by ! ,secret>y1 %all pay a p5alty ( #bej = su* failure1 unless x is %[n t su* failure is due to reasonable cause & n due to willful neglect4 7#b7 ,def9itions ,= purposes ( ?is subsection-- 7,a7 ,electronic return orig9ator 7i7 ,9 g5]al ,! t]m electronic return orig9ator means a p]son :o orig9ates ! electronic submission ( #a or m returns or claims = refund on behalf ( o!r taxpay]s4 7ii7 ,exceptions ,! t]m electronic return orig9ator %all n include a p]son m]ely because su* p]son orig9ates an electronic submission describ$ 9 clause 7i7-- 7,i7 by furni%+ me*anical assi/ance to a p]son describ$ 9 su* subclause1 7,,ii7 at ! direction ( an employ] 7or ( an (fic] or employee ( ! employ]7 by :om su* p]son is regul>ly & cont9u\sly employ$1 7,,iii7 z a fiduci>y1 or 7,,iv7 9 response to a det]m9ation t directly or indirectly affects ! tax liability ( a taxpay]4 7,b7 ,electronic fil+ id5tification numb] 7i7 ,9 g5]al ,! t]m electronic fil+ id5tification numb] means an id5tification numb] assign$ by ! ,secret>y to a p]son au?oriz$ to file returns 9 electronic =mat on behalf ( o!r taxpay]s4 7ii7 ,susp5sion or revocation ,9 ! case ( any electronic fil+ id5tification numb] :i* has be5 susp5d$ or revok$ by ! ,secret>y1 su* numb] %all n be deem$ valid = purposes ( p>agraph 7#a74 1 & 7#d7 9 subsection 7i77#a71 z r$esignat$ by p>agraph 7#b71 by /rik+ & 7g7 & ins]t+ 7g71 & 7h74 7b7 ,modification ( def9ition ( tax return prep>] ,section #ggja7;a77#cf7 is am5d$-- 7#a7 by /rik+ subp>agraph 7,a7 & ins]t+ ! foll[+3 7,a7 ,9 g5]al ,! t]m tax return prep>] means any p]son :o prep>es = comp5sation1 or :o employs "o or m p]sons to prep>e = comp5sation1 any return ( tax impos$ by ?is title1 any docum5t purport+ to be a return ( tax impos$ by ?is title1 or any claim = refund ( tax impos$ by ?is title4 ,= purposes ( ! prec$+ s5t5ce1 ! prep>ation ( a sub/antial portion ( a return1 docum5t purport+ to be a return1 or claim = refund %all be treat$ z if x 7 ! prep>ation ( su* return1 docum5t purport+ to be a return1 or claim = refund4 1 & 7#b7 9 subp>agraph 7,b7-- 7,a7 9 clause 7ii71 by /rik+ return or claim = refund & ins]t+ return1 docum5t purport+ to be a return1 or claim = refund1 & 7,b7 9 clause 7iii71 by /rik+ return or claim = refund & ins]t+ return1 docum5t purport+ to be a return1 or claim = refund4 7c7 ,prev5tion ( inadv]t5t errors involv+ id5tify+ numb]s 7#a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all e/abli% a program to improve volunt>y compliance ) respect to requirem5ts "u subsections 7c7 & 7h7 ( section #ffie ( ! ,int]nal ,rev5ue ,code ( #aihf 7z am5d$ by ?is section7 & avoid ! imposition ( p5alties "u su* subsections4 7#b7 ,opportunity to correct ,= purposes ( ! program describ$ 9 p>agraph 7#a71 ! ,secret>y %all-- 7,a7 prior to acceptance = process+1 id5tify-- 7i7 any return or claim = refund :i* has be5 electronically submitt$ & does n include an id5tify+ numb] :i* complies ) section #faji7;a77#d77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 & 7ii7 any return or claim = refund :i* has be5 electronically submitt$ & does n include an electronic fil+ id5tification numb] 7z def9$ 9 section #ffie7;h77#b77;,b7 ( su* ,code71 & 7,b7 provide an opportunity = ! p]son :o submitt$ su* return or claim = refund to avoid imposition ( a p5alty "u subsection 7c7 or 7h7 ( section #ffie ( su* ,code1 z applicable1 if-- 7i7 su* return or claim = refund is )drawn1 or 7ii7 ! correct id5tify+ numb] or electronic fil+ id5tification numb] is provid$4 7d7 ,crim9al p5alty 7#a7 ,9 g5]al ,"p ,i ( sub*apt] ,a ( *apt] #ge is am5d$ by add+ at ! end ! foll[+ new section3 #gbah4 ,willful misuse or misappropriation ( id5tify+ numb] 7a7 ,9 g5]al ,any tax return prep>] :o1 ) respect to any return1 docum5t purport+ to be a return1 or claim = refund-- 7#a7 willfully fails to furni% a valid prep>] tax id5tification numb] ) int5t to evade or defeat ! application ( any requirem5t "u any provision ( ?is title :i* requires su* prep>] to obta9 & furni% su* numb]1 7#b7 willfully furni%es a prep>] tax id5tification numb] :i*-- 7,a7 does n exi/1 7,b7 is inactive or expir$1 7,c7 has be5 )drawn1 7,d7 is susp5d$ or has be5 revok$1 or 7,e7 is o!rwise invalid = use by su* tax return prep>]1 or 7#c7 willfully furni%es a prep>] tax id5tification numb] :i* is assign$ to ano!r p]son1 %all1 9 addition to any o!r p5alties provid$ by law1 be guilty ( a felony &1 ^u conviction !re(1 %all be f9$ n m ?an #ej1jjj 7#ajj1jjj 9 ! case ( a corporation71 or imprison$ n m ?an #b ye>s1 or bo?1 toge!r ) ! co/s ( prosecution4 7b7 ,prep>] tax id5tification numb] ,! t]m prep>] tax id5tification numb] means an id5tify+ numb] describ$ 9 section #faji7;a77#d77;,a74 4 7#b7 ,cl]ical am5dm5t ,! table ( sections = "p ,i ( sub*apt] ,a ( *apt] #ge is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #gbah4 ,willful misuse or misappropriation ( id5tify+ numb]4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to returns or claims = refund fil$ aft] ! date :i* is #ah mon?s aft] ! date ( enactm5t ( ?is ,act4 #d4 ,p5alties = improp] tax prep>ation or misappropriation ( refunds 7a7 ,o!r assessable p5alties ) respect to ! prep>ation ( tax returns = o!r p]sons ,section #ffie1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ #ej & ins]t+ #bej1 & 7,b7 by /rik+ #be1jjj & ins]t+ #ej1jjj1 7#b7 9 subsection 7b7-- 7,a7 by /rik+ #ej & ins]t+ #bej1 & 7,b7 by /rik+ #be1jjj & ins]t+ #ge1jjj1 7#c7 9 subsection 7d7-- 7,a7 by /rik+ #ej & ins]t+ #bej1 & 7,b7 by /rik+ #be1jjj & ins]t+ #ej1jjj1 7#d7 9 subsection 7e7-- 7,a7 by /rik+ #ej & ins]t+ #bej1 & 7,b7 by /rik+ #be1jjj & ins]t+ #ge1jjj1 7#e7 9 subsection 7g71 by /rik+ #ejj & ins]t+ #a1jjj1 & 7#f7 9 subsection 7i77#a7-- 7,a7 by /rik+ #bjad & ins]t+ #bjbd1 & 7,b7 by /rik+ cal5d> ye> #bjac & ins]t+ cal5d> ye> #bjbc4 7b7 ,misappropriation ( electronic funds transf] 7#a7 ,9 g5]al ,subsection 7f7 ( section #ffie is am5d$ to read z foll[s3 7f7 ,negotiation ( *eck2 misappropriation 7#a7 ,9 g5]al ,any p]son :o is a tax return prep>] :o-- 7,a7 endorses or o!rwise negotiates 7directly or ?r\gh an ag5t7 any *eck made 9 respect ( ! taxes impos$ by ?is title :i* is issu$ to a taxpay] 7o!r ?an ! tax return prep>]71 or 7,b7 misappropriates any refund 7or advance paym5t ) respect to a refundable cr$it71 or any portion !re(1 issu$ to any taxpay] ?r\gh an electronic funds transf]1 %all pay a p5alty 9 an am\nt det]m9$ "u p>agraph 7#b74 7#b7 ,p5alty ,! am\nt ( ! p5alty det]m9$ "u ?is p>agraph %all1 ) respect to ea* *eck or transf] describ$ 9 p>agraph 7#a71 be equal to ! great] (-- 7,a7 #a1jjj1 or 7,b7 ! full am\nt ( su* *eck or transf]4 7#c7 ,exception ,p>agraph 7#a77;,a7 %all n apply ) respect to ! deposit by a bank 7)9 ! mean+ ( section #eha7 ( ! full am\nt ( ! *eck 9 ! taxpay]'s acc\nt 9 su* bank = ! b5efit ( ! taxpay]4 4 7#b7 ,con=m+ am5dm5t ,section #ffie7;i77#a7 is am5d$ by /rik+ 7f71 & ins]t+ 7f77#b77;,a714 #e4 ,au?ority to d5y1 revoke1 or susp5d prep>] tax id5tification numb]s 7a7 ,9 g5]al ,section #faji is am5d$-- 7#a7 9 subsection 7a71 by /rik+ p>agraph 7#d7 & ins]t+ ! foll[+3 7#d7 ,furni%+ id5tify+ numb] ( tax return prep>] 7,a7 ,9 g5]al ,any return or claim = refund :i* is prep>$ by a tax return prep>] %all be> su* id5tify+ numb] = secur+ prop] id5tification ( su* prep>]1 _! employ]1 or bo?1 z may be prescrib$4 7,b7 ,exception = sup]vis$ prep>] ,subp>agraph 7,a7 %all n apply ) respect to any tax return prep>] :o prep>es any return or claim = refund if su* prep>] is-- 7i7 employ$ by a specifi$ practition]1 & 7ii7 "u ! sup]vision & direction ( a tax return prep>] :o-- 7,i7 includes _! id5tify+ numb] 7z describ$ 9 subp>agraph 7,a77 on su* return or claim1 7,,ii7 signs su* return or claim1 & 7,,iii7 is a specifi$ practition]4 7,c7 ,susp5sion or revocation ,9 ! case ( any id5tify+ numb] :i* has be5 susp5d$ or revok$ by ! ,secret>y "u subsection 7e71 su* numb] %all n be deem$ valid = purposes ( subp>agraph 7,a74 7,d7 ,def9itions ,= purposes ( ?is section-- 7i7 ,specifi$ practition] ,! t]m specifi$ practition] means a c]tifi$ public acc\ntant1 attorney1 or enroll$ ag5t-- 7,i7 :o is 9 good /&+ & au?oriz$ to repres5t p]sons be=e ! ,dep>tm5t ( ! ,treasury "u section #ccj ( title #ca1 ,unit$ ,/ates ,code1 & 7,,ii7 ^: pr(essional lic5se or c]tification has n be5 revok$4 7ii7 ,return2 claim = refund ,! t]ms return & claim = refund h ! respective mean+s giv5 to su* t]ms by section #ffif7;e74 1 & 7#b7 by ins]t+ aft] subsection 7d7 ! foll[+3 7e7 ,id5tify+ numb] ( tax return prep>] 7#a7 ,9 g5]al ,! ,secret>y %all ma9ta9 a program = adm9i/ration ( prep>] tax id5tification numb]s requir$ "u subsection 7a77#d71 :i* %all include re/rictions on ! issuance ( su* numb]s to any individual o!r ?an an individual :o-- 7,a7 meets ! suitability requirem5ts ( p>agraph 7#b7 & ! education requirem5ts ( p>agraph 7#c71 7,b7 meets ! /ate program requirem5ts ( p>agraph 7#d71 or 7,c7 is a specifi$ practition]4 7#b7 ,demon/ration ( suitability 7,a7 ,9 g5]al ,an individual meets ! suitability requirem5ts ( ?is p>agraph if su* individual has demon/rat$ to ! ,secret>y ! individual's suitability to be a tax return prep>] by-- 7i7 provid+ su* in=mation z ! ,secret>y det]m9es necess>y1 & 7ii7 und]go+ a backgr\nd *eck1 includ+ a review by ! ,secret>y reg>d+ compliance ) p]sonal tax obligations4 7,b7 ,conduct demon/rat+ lack ( suitability ,= purposes ( subp>agraph 7,a71 an individual %all be deem$ to h fail$ to demon/rate _! suitability to be a tax return prep>] if-- 7i7 any lic5se or regi/ration issu$ to su* individual by a ,/ate to prep>e tax returns has be5 susp5d$ or revok$ by su* ,/ate1 or 7ii7 ! ,secret>y det]m9es t su* individual is describ$ 9 clauses 7ii7 ?r\gh 7vi7 ( p>agraph 7#e77;,a74 7,c7 ,regulations & guidance ,! ,secret>y %all issue su* regulations or o!r guidance z ! ,secret>y det]m9es necess>y to c>ry out ! purposes ( ?is p>agraph4 7,d7 ,prohibition on exam9ations ,= purposes ( subp>agraph 7,a71 except z provid$ 9 p>agraph 7#c77;,c77iii71 ! ,secret>y may n require an exam9ation z a pr]equisite = ! assignm5t or r5ewal ( a prep>] tax id5tification numb]4 7,e7 ,gr&fa!r+ ( prior backgr\nd *ecks ,= purposes ( subp>agraph 7,a77ii71 9 ! case ( an individual :o has und]gone a backgr\nd *eck prior to ! date ( enactm5t ( ?is subsection1 ! ,secret>y may deem su* individual to h satisfi$ ! requirem5t "u su* subp>agraph4 7#c7 ,educational programs 7,a7 ,9 g5]al ,an individual meets ! education requirem5ts ( ?is p>agraph if su* individual completes a specifi$ numb] ( h\rs ( educational programs on e?ics1 pr(essional responsibility1 & tax law 7includ+ rec5tly enact$ legislation7 z may be requir$ by ! ,secret>y prior to ! assignm5t or r5ewal ( a prep>] tax id5tification numb]4 7,b7 ,additional educational requirem5ts = r5ewal ,! ,secret>y may require any individual seek+ ! r5ewal ( a prep>] tax id5tification numb] to complete educational programs 9 addition to ^? requir$ "u subp>agraph 7,a74 ,any educational programs requir$ "u ?is subp>agraph %all be bas$ on-- 7i7 a review ( returns :i* include ! prep>] tax id5tification numb] ( su* prep>]1 & 7ii7 any errors id5tifi$ by ! ,secret>y z "p ( ! review describ$ 9 clause 7i74 7,c7 ,o!r requirem5ts ,= purposes ( ?is p>agraph1 ! ,secret>y-- 7i7 may n require a tax return prep>] to annually complete m ?an #ah h\rs ( educational programs1 7ii7 %all require t any educational program include writt5 mat]ials :i* satisfy su* /&>ds z are e/abli%$ by ! ,secret>y1 7iii7 may require t any educational program include a me?od to ensure t ! tax return prep>] att5d$ ! program & suffici5tly und]/ood ! mat]ial pres5t$1 & 7iv7 may n direct any educational program to be complet$ ?r\gh a specific provid]4 7,d7 ,notice ( failure to timely complete requirem5ts ,! ,secret>y %all provide any tax return prep>] :o fails to complete ! requirem5ts ( ?is p>agraph notice ( su* failure & a p]iod 9 :i* to cure su* failure4 7,e7 ,publication ( approv$ c\rses ,! ,secret>y %all publi%1 on ! public website ( ! ,int]nal ,rev5ue ,s]vice-- 7i7 a li/ ( educational programs :i* h be5 det]m9$ by ! ,secret>y to satisfy ! requirem5t "u clause 7ii7 ( subp>agraph 7,c7 7&1 if applicable1 ! requirem5t "u clause 7iii7 ( su* subp>agraph71 includ+ ! provid]s ( su* programs1 & 7ii7 any su* requirem5ts z ! ,secret>y deems necess>y to impose ) respect to any additional programs requir$ "u subp>agraph 7,b74 7#d7 ,exemption 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 any individual meets ! /ate program requirem5ts ( ?is p>agraph if su* individual ma9ta9s a valid ,/ate lic5se or regi/ration issu$ by a ,/ate lic5s+ program or ,/ate regi/ration program 7includ+ ,/ate tax education c\ncils7 :i* includes exam9ation1 education1 & backgr\nd *eck requirem5ts t are det]m9$ by ! ,secret>y 7on ! basis ( su* in=mation z is provid$ by ! taxpay] or ,/ate program7 to be comp>able to ! suitability requirem5ts describ$ 9 p>agraph 7#b7 & ! education requirem5ts describ$ 9 p>agraph 7#c74 7,b7 ,gr&fa!r+ ( c]ta9 programs ,= purposes ( subp>agraph 7,a71 ) respect to det]m9+ :e!r a ,/ate lic5s+ program or ,/ate regi/ration program 7includ+ ,/ate tax education c\ncils7 includes exam9ation1 education1 & backgr\nd *eck requirem5ts :i* are comp>able to ! suitability requirem5ts describ$ 9 p>agraph 7#b7 & ! education requirem5ts describ$ 9 p>agraph 7#c71 su* det]m9ation %all be made by ! ,secret>y )\t reg>d to :e!r su* requirem5ts 7 includ$ 9 su* program at ! "t t su* individual 0 lic5s$ or regi/]$ "u su* program1 provid$ t su* requirem5ts are1 z ( ! date t su* individual reque/$ assignm5t or r5ewal ( a prep>] tax id5tification numb] "u ?is subsection1 pres5tly includ$ 9 su* program4 7#e7 ,au?ority to revoke or susp5d prep>] tax id5tification numb] 7,a7 ,9 g5]al ,! ,secret>y may susp5d or revoke a prep>] tax id5tification numb] if1 aft] notice & opportunity = a he>+1 ! ,secret>y makes a det]m9ation t ! tax return prep>]-- 7i7 has n met-- 7,i7 ! suitability requirem5ts ( p>agraph 7#b7 & ! education requirem5ts ( p>agraph 7#c71 or 7,,ii7 ! ,/ate program requirem5ts ( p>agraph 7#d71 7ii7 is incompet5t1 z demon/rat$ by a repeat$ patt]n ( errors 9 returns t 7 prep>$ by su* prep>] or individuals :o 7 sup]vis$ by su* prep>] 7z describ$ 9 subsection 7a77#d77;,b77 :i* affect$ ! det]m9ation ( tax liability 9 su* returns1 7iii7 is disreputable1 z demon/rat$ by-- 7,i7 giv+ false or mislead+ in=mation "u p>agraph 7#b77;,a77i71 7,,ii7 failure to comply ) p]sonal tax obligations1 7,,iii7 revocation or susp5sion ( any lic5se or regi/ration issu$ by a ,/ate = ! prep>ation ( tax returns1 7,,iv7 conviction ( any crim9al (f5se-- 7aa7 involv+ di%one/y or brea* ( tru/1 or 7bb7 :i* is puni%able "u ?is title1 7,v7 a f9al det]m9ation ( liability = a p5alty pursuant to section #ffid1 #ffie7;h71 #fgjj1 #fgja1 or #fgjb1 or 7,,vi7 any conduct simil> to ! conduct describ$ 9 subclauses 7,i7 ?r\gh 7,v71 7iv7 9 ! case ( a p]son subject to regulation "u section #ccj ( title #ca1 ,unit$ ,/ates ,code1 or regulations prescrib$ !reund]1 has violat$ ! requirem5ts "u su* section or su* regulations1 7v7 ) int5t to defraud1 willfully & kn[+ly misleads or ?reat5s-- 7,i7 ! p]son ^: return or claim = refund is be+ prep>$1 or 7,,ii7 a prospective p]son seek+ = a return or claim = refund to be prep>$1 or 7vi7 has engag$ 9 conduct 7z id5tifi$ 9 regulations or guidance issu$ by ! ,secret>y7 :i* is simil> to ! conduct describ$ 9 clauses 7i7 ?r\gh 7v7 & t ! d5ial1 susp5sion1 or revocation ( su* numb] w\ld promote compliance ) ! requirem5ts ( ?is title & effective tax adm9i/ration4 7,b7 ,monet>y p5alty 7i7 ,9 g5]al ,9 addition to1 or 9 lieu (1 any susp5sion or revocation ( a prep>] tax id5tification numb] "u subp>agraph 7,a71 ! ,secret>y may impose a p5alty 9 any am\nt n exce$+-- 7,i7 9 ! case ( any det]m9ation made by ! ,secret>y ) respect to a tax return prep>] :i* is describ$ 9 subp>agraph 7,a7 7) ! exception ( clause 7v7 ( su* subp>agraph71 #a1jjj ) respect to ea* su* det]m9ation1 & 7,,ii7 9 ! case ( any det]m9ation made by ! ,secret>y ) respect to a tax return prep>] :i* is describ$ 9 subp>agraph 7,a77v71 #e1jjj ) respect to ea* su* det]m9ation4 7ii7 ,r$uction ,any p5alty impos$ "u clause 7i7 %all be r$uc$ by ! am\nt ( any p5alty impos$ "u section #ffid1 #ffie1 #fgjj1 #fgja1 or #fgjb ) reg>d to ! same conduct4 7iii7 ,adju/m5t = inflation 7,i7 ,9 g5]al ,9 ! case ( any p5alty impos$ dur+ any cal5d> ye> beg9n+ aft] #bjbe1 ! #a1jjj am\nt 9 clause 7i77,i7 & ! #e1jjj am\nt 9 clause 7i77,,ii7 %all ea* be increas$ by an am\nt equal to-- 7aa7 su* doll> am\nt1 multipli$ by 7bb7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjbd = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7,,ii7 ,r\nd+ ,if any am\nt det]m9$ "u subclause 7,i7 is n a multiple ( #ajj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ajj4 7,c7 ,re9/atem5t ,! ,secret>y %all1 ?r\gh regulations or o!r guidance1 e/abli% proc$ures to all[ any tax return prep>] ^: prep>] tax id5tification numb] has be5 susp5d$ or revok$ pursuant to subp>agraph 7,a7 to h su* numb] reissu$ 7or1 9 ! case ( a susp5sion1 = su* susp5sion to be t]m9at$71 provid$ t su* prep>] demon/rates1 to ! satisfaction ( ! ,secret>y1 t-- 7i7 ! conduct describ$ 9 su* p>agraph :i* 0 ! basis = su* susp5sion or revocation has be5 suffici5tly address$ or resolv$ 7su* z ?r\gh completion ( educational programs describ$ 9 p>agraph 7#c7 or re9/atem5t ( a lic5se issu$ by a ,/ate = ! prep>ation ( tax returns71 & 7ii7 effective tax adm9i/ration w\ld be promot$ by t]m9at+ ! susp5sion ( su* numb] or reissu+ su* numb] to su* prep>]4 7,d7 ,prelim9>y susp5sion 7i7 ,9 g5]al ,aft] notice & opportunity to respond1 ! ,secret>y may susp5d ! prep>] tax id5tification numb] ( a tax return prep>] = a p]iod ( n great] ?an #ahj days if ! ,secret>y det]m9es t-- 7,i7 su* tax return prep>] has engag$ 9 any conduct describ$ 9 clauses 7i7 ?r\gh 7vi7 ( subp>agraph 7,a71 & 7,,ii7 su* susp5sion is necess>y to prev5t s]i\s economic h>m to taxpay]s or s]i\s impairm5t ( effective tax adm9i/ration1 su* z to prev5t ! fil+ ( fraudul5t returns or claims = refund4 7ii7 ,limitation ,= purposes ( clause 7i71 if ! prep>] tax id5tification numb] ( a tax return prep>] has be5 susp5d$ pursuant to su* clause #b times dur+ any #e-ye> p]iod1 ! ,secret>y may n issue an additional susp5sion pursuant to su* clause ) respect to su* prep>] dur+ su* p]iod unless su* susp5sion is subsequ5t to a det]m9ation by ! ,secret>y to susp5d or revoke ! prep>] tax id5tification numb] ( su* prep>] pursuant to subp>agraph 7,a74 7,e7 ,regulations ,n lat] ?an #bd mon?s aft] ! date ( enactm5t ( ?is subsection1 ! ,secret>y %all issue su* regulations or o!r guidance z ! ,secret>y det]m9es necess>y to c>ry out ! purposes ( ?is p>agraph1 includ+-- 7i7 guidel9es t id5tify ! p>ticul> p5alty applicable to any conduct describ$ 9 subp>agraph 7,a71 & 7ii7 ! mann] ( notice & opportunity to respond = purposes ( subp>agraph 7,d74 7#f7 ,appeal ,9 ! case ( any tax return prep>] = :om ! ,secret>y has made a det]m9ation-- 7,a7 t su* prep>] has n met ! requirem5ts ( p>agraphs 7#b7 & 7#c7 or ( p>agraph 7#d7 & t issuance ( a prep>] tax id5tification numb] %\ld be d5i$1 7,b7 "u p>agraph 7#e77;,a7 t ! prep>] tax id5tification numb] = su* prep>] %\ld be susp5d$ or revok$1 or 7,c7 t a p5alty %\ld be impos$ pursuant to p>agraph 7#e77;,b71 su* prep>] %all be provid$ ) an opportunity to appeal su* det]m9ation to ! ,int]nal ,rev5ue ,s]vice ,indep5d5t ,(fice ( ,appeals pursuant to proc$ures 7z e/abli%$ by ! ,secret>y ?r\gh regulations or o!r guidance7 :i* are simil> to ! proc$ures provid$ "u section #ccj ( title #ca1 ,unit$ ,/ates ,code1 or regulations prescrib$ !reund]4 7#g7 ,disclosure ( f9al det]m9ations 7,a7 ,9 g5]al ,9 ! case ( any f9al det]m9ation ) respect to ! ext5d$ susp5sion1 revocation1 reissuance1 or t]m9ation ( an ext5d$ susp5sion ( a prep>] tax id5tification numb] "u ?is subsection1 n lat] ?an #cj days foll[+ su* det]m9ation1 ! ,secret>y %all publi% su* det]m9ation on ! public website ( ! ,int]nal ,rev5ue ,s]vice1 :i* %all include-- 7i7 a /atem5t ( ! facts & circum/ances relat+ to su* det]m9ation1 & 7ii7 ! reasons = ! det]m9ation4 7,b7 ,ext5d$ susp5sion ,= purposes ( subp>agraph 7,a71 ! t]m ext5d$ susp5sion means a susp5sion issu$ by ! ,secret>y pursuant to p>agraph 7#e77;,a7 = a p]iod ( great] ?an #ahj days4 7#h7 ,prep>] tax id5tification numb] ,= purposes ( ?is subsection1 ! t]m prep>] tax id5tification numb] means an id5tify+ numb] describ$ 9 subsection 7a77#d77;,a74 4 7b7 ,in=mation returns ( tax return prep>]s ,section #fjfj is am5d$-- 7#a7 by r$esignat+ subsection 7c7 z subsection 7d71 & 7#b7 by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 ,additional in=mation f sup]visors ,9 ! case ( a p]son requir$ to make a return "u subsection 7a7 :o is describ$ 9 section #faji7;a77#d77;,b77ii77,,iii71 su* p]son %all include 9 su* return-- 7#a7 ! "n & taxpay] id5tification numb] ( any tax return prep>] "u _! sup]vision & direction :o1 pursuant to subp>agraph 7,b7 ( section #faji7;a77#d71 is exempt$ f ! requirem5t "u subp>agraph 7,a7 ( su* section1 7#b7 ) respect to ea* tax return prep>] describ$ 9 p>agraph 7#a71 :e!r su* prep>] is employ$ by su* p]son z ( ! date on :i* su* return is made1 & 7#c7 su* o!r in=mation z ! ,secret>y det]m9es appropriate4 4 7c7 ,det]m9ations reg>d+ practice be=e ! ,dep>tm5t ,section #ccj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsection 7e7 z subsection 7f72 & 7#b7 by ins]t+ aft] subsection 7d7 ! foll[+3 7e7 ,disclosure ( f9al det]m9ations ,9 ! case ( any f9al det]m9ation "u subsection 7c7 or 7d71 n lat] ?an #cj days foll[+ su* det]m9ation1 ! ,secret>y %all publi% su* det]m9ation on a public website1 :i* %all include-- 7#a7 a /atem5t ( ! facts & circum/ances relat+ to su* det]m9ation1 & 7#b7 ! reasons = ! det]m9ation4 4 7d7 ,disclosure relat+ to misconduct by practition]s & tax return prep>]s 7#a7 ,9 g5]al ,section #fajc7k7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,disclosure relat+ to misconduct by practition]s & tax return prep>]s ,"u su* proc$ures z ! ,secret>y may prescribe1 ! ,secret>y may disclose returns & return in=mation to ! ext5t ! ,secret>y det]m9es x is necess>y to publi% det]m9ations pursuant to section #faji7;e77#g7 & section #ccj7;e7 ( title #ca1 ,unit$ ,/ates ,code1 provid$ t su* disclosure is r$act$ to remove-- 7,a7 any "n1 address1 or o!r id5tify+ in=mation ) respect to any p]sons o!r ?an ! repres5tative or tax return prep>] :o is ! subject ( su* det]m9ation1 & 7,b7 su* o!r in=mation z ! ,secret>y det]m9es appropriate to protect ! privacy ( su* p]sons4 4 7#b7 ,con=m+ am5dm5t ,section #fajc7p77#c77;,a7 is am5d$ by /rik+ or 7#i7 & ins]t+ 7#i71 or 7#af74 7e7 ,requirem5t ,to include id5tify+ numb] = paid prep>] ( (f]-9-,compromise 7#a7 ,9 g5]al ,section #faji7;a7 is am5d$ by ins]t+ aft] p>agraph 7#d7 ! foll[+ new p>agraph3 7#e7 ,furni%+ id5tify+ numb] = (f]-9-compromise ,any (f]-9-compromise 7z describ$ 9 section #gabb7 :i* has be5 prep>$ by any p]son = comp5sation %all include su* id5tify+ numb] z may be prescrib$ = secur+ prop] id5tification ( su* p]son4 4 7#b7 ,p5alty ,section #gabb is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,failure ,to furni% id5tify+ numb] 7#a7 ,9 g5]al 7,a7 ,p5alty ,any p]son :o prep>es an (f]-9-compromise = comp5sation & :o fails to include an id5tify+ numb] :i* complies ) section #faji7;a77#e7 ) respect to su* (f]-9-compromise %all pay a p5alty ( #bej = su* failure4 7,b7 ,non-compliance ,= purposes ( ?is p>agraph1 an id5tify+ numb] %all be deem$ to n comply ) section #faji7;a77#e7 if su* id5tify+ numb]-- 7i7 is assign$ to ano!r p]son1 7ii7 does n exi/1 7iii7 is inactive or expir$1 7iv7 has be5 )drawn1 7v7 is susp5d$ or has be5 revok$1 or 7vi7 is o!rwise invalid = use by ! prep>]4 7,c7 ,adju/m5t = inflation 7i7 ,9 g5]al ,9 ! case ( any docum5ts fil$ dur+ any cal5d> ye> beg9n+ aft] #bjbe1 ! #bej am\nt 9 subp>agraph 7,a7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjbd = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7ii7 ,r\nd+ ,if any am\nt det]m9$ "u clause 7i7 is n a multiple ( #aj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #aj4 7#b7 ,exception ,! p5alty impos$ "u p>agraph 7#a7 %all n apply if x is %[n t su* failure is due to reasonable cause & n due to willful neglect4 7#c7 ,limitation 7,a7 ,9 g5]al ,! maximum p5alty impos$ "u ?is subsection on any p]son ) respect to docum5ts fil$ dur+ any cal5d> ye> %all n exce$ #ge1jjj4 7,b7 ,adju/m5t = inflation 7i7 ,9 g5]al ,9 ! case ( any p5alty impos$ dur+ any cal5d> ye> beg9n+ aft] #bjbe1 ! #ge1jjj am\nt 9 subp>agraph 7,a7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjbd = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7ii7 ,r\nd+ ,if any am\nt det]m9$ "u clause 7i7 is n a multiple ( #a1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #a1jjj4 7#d7 ,o!r applicable rules ,rules simil> to ! rules ( section #ffif %all apply = purposes ( ?is subsection4 4 7f7 ,,gao ,/udy & report on ! ex*ange ( in=mation betwe5 ! ,,irs & ,/ate taxation au?orities 7#a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy & submit to ,congress a report on ! %>+ ( in=mation betwe5 ! ,secret>y & ,/ate au?orities1 z au?oriz$ "u subsections 7d7 & 7k77#e7 ( section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf1 reg>d+ id5tification numb]s issu$ to paid tax return prep>]s & return prep>] m9imum /&>ds4 7#b7 ,increas$ in=mation %>+ ,! /udy & report describ$ 9 p>agraph 7#a7 %all include an analysis ( ! impact t increas$ in=mation %>+ betwe5 ,f$]al & ,/ate au?orities w\ld h on ef=ts to en=ce m9imum /&>ds on paid tax return prep>]s4 7g7 ,publication ( common errors & p5alties ,n lat] ?an #cf mon?s aft] ! date ( ! enactm5t ( ?is ,act & annually !reaft]1 ! ,commission] ( ! ,int]nal ,rev5ue %all publi% on ! public website ( ! ,int]nal ,rev5ue ,s]vice-- 7#a7 ! #aj mo/ frequ5t errors f\nd on tax returns :i* 7 prep>$ by tax return prep>]s 7z def9$ 9 section #ggja7;a77#cf7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 dur+ ! prec$+ cal5d> ye>1 & 7#b7 ) respect to ! prec$+ cal5d> ye>1 ! top #aj reasons t tax return prep>]s 7-- 7,a7 subject to p5alties impos$ "u ! ,int]nal ,rev5ue ,code ( #aihf1 or 7,b7 o!rwise discipl9$ "u section #faji ( su* ,code or section #ccj ( title #ca1 ,unit$ ,/ates ,code4 7h7 ,rule ( con/ruction ,no?+ 9 ?is section 7or am5dm5t made by ?is section7 %all be con/ru$ to require ! ,secret>y to elim9ate or t]m9ate any exi/+ program or au?ority-- 7#a7 :i*1 pursuant to section #ccj ( title #ca1 ,unit$ ,/ates ,code1 p]mits a tax return prep>] to repres5t a taxpay] be=e ! ,dep>tm5t ( ! ,treasury 9 cases 9 :i* su* prep>] prep>$ & sign$ ! return ( tax1 or 7#b7 = publication ( a public database on ! website ( ! ,int]nal ,rev5ue ,s]vice ( tax return prep>]s :o h satisfi$ ! requirem5ts = issuance ( a prep>] tax id5tification numb] 7z def9$ 9 section #faji7;e77#h7 ( ! ,int]nal ,rev5ue ,code ( #aihf74 7i7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all take effect on ! date :i* is #ahj days aft] ! date ( enactm5t ( ?is ,act4 7#b7 ,transition rules = educational requirem5ts = tax return prep>]s 7,a7 ,annual ,fil+ ,season ,program ,9 ! case ( any tax return prep>] :o1 z ( ! date ( enactm5t ( ?is ,act1 has receiv$ a record ( completion ) respect to ! ,annual ,fil+ ,season ,program e/abli%$ by ! ,int]nal ,rev5ue ,s]vice1 su* tax return prep>] %all be deem$ to h satisfi$ ! education requirem5ts ( section #faji7;e77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section7 = ! cal5d> ye> = :i* su* record ( completion applies4 7,b7 ,approv$ c\rses ,9 ! case ( any entity :i*1 z ( ! date ( enactm5t ( ?is ,act1 is approv$ to provide cont9u+ education = purposes ( ! ,annual ,fil+ ,season ,program e/abli%$ by ! ,int]nal ,rev5ue ,s]vice1 su* entity %all be deem$ to satisfy ! applicable requirem5ts "u section #faji7;e77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf until ! date on :i* ! ,secret>y has-- 7i7 issu$ su* regulations or o!r guidance z ! ,secret>y det]m9es necess>y = purposes ( e/abli%+ /&>ds = educational programs "u su* section1 & 7ii7 pursuant to subp>agraph 7,e7 ( su* section1 publi%$ a li/ ( educational programs :i* h be5 det]m9$ by ! ,secret>y to satisfy ! applicable requirem5ts "u su* section4