Taxpayer Protection and Preparer Proficiency Act of 2021

Taxpayer Protection and Preparer Proficiency Act of 2021

This bill authorizes the Department of the Treasury to regulate tax return preparers, including by sanctioning preparers for incompetence and disreputable behavior and by establishing minimum competency standards for preparers.

Bill 117 HR 4184, also known as the Taxpayer Protection and Preparer Proficiency Act of 2021, aims to enhance taxpayer protection and improve the proficiency of tax preparers in the United States. The bill seeks to address concerns regarding the accuracy and reliability of tax preparation services by establishing new requirements for tax preparers.

Under this legislation, tax preparers would be required to pass a competency exam in order to demonstrate their proficiency in preparing tax returns. Additionally, the bill would establish a registration system for tax preparers, allowing the IRS to better regulate and oversee the industry.

The Taxpayer Protection and Preparer Proficiency Act of 2021 also includes provisions aimed at protecting taxpayers from fraudulent or unscrupulous tax preparers. The bill would increase penalties for tax preparers who engage in fraudulent activities and provide greater recourse for taxpayers who have been harmed by such practices. Overall, the goal of this legislation is to improve the quality of tax preparation services in the United States and enhance taxpayer protection. By establishing new requirements for tax preparers and increasing penalties for fraudulent behavior, the bill aims to ensure that taxpayers receive accurate and reliable assistance when filing their taxes.