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New Rules for Tax Return Preparers

This act introduces new requirements for individuals who professionally assist with tax returns. The goal is to increase citizens' security and confidence that their tax matters are handled by competent professionals. This allows citizens to feel more secure entrusting their finances to qualified individuals.
Key points
Tax return preparers will need to meet minimum standards, such as passing an exam, completing continuing education, and undergoing a background check.
Penalties will be introduced for tax return preparers who mislead or threaten clients.
The IRS will be able to revoke a tax return preparer's identification number if they are found to be incompetent or disreputable.
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Additional Information
Taxpayer Protection and Preparer Proficiency Act of 2021
Print number: HR 4184
Sponsor: Rep. Panetta, Jimmy [D-CA-20]
Process start date: 2021-06-25