According to Accounting Today, Rep. Steve Cohen (D-TN) has reintroduced the Tax Return Preparer Accountability Act (H.R. 1983), seeking to give the IRS the authority to regulated tax preparers more effectively.

This bill would establish minimum standards for competency, accuracy and fairness, aiming to protect taxpayers from unscrupulous preparers. The legislation is a response to concerns over the actions of a minority of preparers who exploit clients or help claim unqualified deductions. 

The bill directs the IRS to implement an automated system to identify taxpayers at risk of economic hardship, set competency requirements for tax preparers and revoke the identification numbers of noncompliant preparers. Additionally, it would require tax software providers to meet strict information security standards. 

Cohen emphasized the need for regulation, stating that while most tax preparers are trustworthy, it’s crucial to guarantee quality service for taxpayers. This bill also follows longstanding IRS efforts to regulate unenrolled preparers, such as the Registered Tax Return Preparer Program, which was halted due to legal challenges. 

With support from the IRS Electronic Tax Administration Advisory Committee, the bill represents continued legislative efforts to address the growing need for oversight in the tax preparation industry. The bill is currently with the House Ways and Means Committee for review.