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Taxpayer Protection: Stricter Penalties and Professional Standards for Tax Preparers.

This law significantly increases financial penalties and introduces strict education and background check requirements for professional tax preparers. The goal is to protect citizens from fraud, errors, and refund theft by dishonest advisors. The IRS gains explicit authority to suspend or revoke a preparer's identification number (PTIN) for serious misconduct, aiming to improve service quality.
Key points
Increased financial penalties for tax preparers who commit errors, fail to sign returns, or misuse identification numbers (penalties rise from $50 to $250).
Mandatory suitability checks (including personal tax compliance) and ongoing education for all individuals seeking or renewing a Preparer Tax Identification Number (PTIN).
New severe penalties, including felony charges, for willful misuse of a PTIN or misappropriation of a client's tax refund via electronic transfer.
The IRS must establish a program allowing preparers to correct identifying number errors on electronic returns before penalties are imposed.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_6323
Sponsor: Rep. Panetta, Jimmy [D-CA-19]
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Taxpayer Protection and Preparer Proficiency Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6323.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

What are the main provisions?

Key points include:

  • Increased financial penalties for tax preparers who commit errors, fail to sign returns, or misuse identification numbers (penalties rise from $50 to $250).
  • Mandatory suitability checks (including personal tax compliance) and ongoing education for all individuals seeking or renewing a Preparer Tax Identification Number (PTIN).
  • New severe penalties, including felony charges, for willful misuse of a PTIN or misappropriation of a client's tax refund via electronic transfer.
  • The IRS must establish a program allowing preparers to correct identifying number errors on electronic returns before penalties are imposed.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Panetta, Jimmy [D-CA-19].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes