[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4141 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 4141

 To ensure that tax return preparers demonstrate minimum standards of 
                              competency.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 1, 2015

Mrs. Black (for herself and Mr. Meehan) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To ensure that tax return preparers demonstrate minimum standards of 
                              competency.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Return Preparer Competency Act 
of 2015''.

SEC. 2. MINIMUM COMPETENCY STANDARDS FOR TAX RETURN PREPARERS.

    (a) In General.--Subsection (a) of section 330 of title 31, United 
States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) regulate--
                    ``(A) the practice of representatives of persons 
                before the Department of the Treasury; and
                    ``(B) tax return preparers (as defined in section 
                7701(a)(36) of the Internal Revenue Code of 1986); 
                and''; and
            (2) in paragraph (2)--
                    (A) by inserting ``or tax return preparer'' after 
                ``representative'' each place it appears; and
                    (B) by inserting ``or in preparing their tax 
                returns, claims for refund, or documents in connection 
                with tax returns or claims for refund'' after ``cases'' 
                in subparagraph (D).
    (b) Failure To Meet Minimum Competency Standards.--Subsection (b) 
of section 330 of title 31, United States Code, is amended--
            (1) by striking ``before the Department'';
            (2) by inserting ``or tax return preparer'' after 
        ``representative'' each place it appears; and
            (3) in paragraph (4), by striking ``misleads or threatens'' 
        and all that follows and inserting ``misleads or threatens--
                    ``(A) any person being represented or any 
                prospective person being represented; or
                    ``(B) any person or prospective person whose return 
                (as defined in section 6696(e)(1) of the Internal 
                Revenue Code of 1986), claim for refund (as defined in 
                section 6696(e)(2) of such Code), or document in 
                connection with a return or claim for refund, is being 
                or may be prepared.''.
    (c) Minimum Competency Standards for Tax Return Preparers.--
            (1) In general.--Section 330 of title 31, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(e) Tax Return Preparers.--
            ``(1) In general.--Any tax return preparer (as defined in 
        section 7701(a)(36) of the Internal Revenue Code of 1986) shall 
        demonstrate minimum competency standards under this subsection, 
        by--
                    ``(A) obtaining an identifying number for securing 
                proper identification of such preparer as described in 
                section 6109(a)(4) of the Internal Revenue Code of 
                1986;
                    ``(B) satisfying the examination requirements 
                described in paragraph (2);
                    ``(C) satisfying the annual continuing education 
                requirements described in paragraph (3); and
                    ``(D) completing a background check as described in 
                paragraph (4).
            ``(2) Examination.--
                    ``(A) In general.--A tax return preparer shall 
                provide the Secretary with proof of successful 
                completion of an examination that evaluates the 
                knowledge and competency of the tax return preparer, as 
                prescribed by the Secretary through regulations, forms 
                or instructions, regarding--
                            ``(i) preparation of a return (as defined 
                        in section 6696(e)(1) of the Internal Revenue 
                        Code of 1986);
                            ``(ii) ethical standards for preparation of 
                        such returns; and
                            ``(iii) other topics as the Secretary may 
                        prescribe.
                    ``(B) Exceptions.--The Secretary shall exempt tax 
                return preparers from the examination requirements 
                under this paragraph pursuant to such requirements as 
                are determined appropriate by the Secretary, which 
                shall include any comparable examinations administered 
                by the Secretary or any comparable State licensing or 
                registration programs.
            ``(3) Continuing education.--A tax return preparer shall 
        complete continuing education on an annual basis, which shall 
        consist of not less than 15 hours of instruction, which shall 
        include not less than 2 hours of training relating to ethics 
        and not less than 3 hours relating to Federal tax law updates.
            ``(4) Background check.--
                    ``(A) In general.--A tax return preparer shall 
                demonstrate the requirements of subsection (a)(2) by 
                providing the Secretary with a report, as prescribed by 
                the Secretary through regulations, forms or 
                instructions.
                    ``(B) Exceptions.--The Secretary shall exempt tax 
                return preparers who have been subject to comparable 
                background checks administered by the Secretary or any 
                comparable State licensing or registration programs.''.
    (d) Contingency Fees.--The Secretary of the Treasury may not 
regulate, prohibit, or restrict the use of a contingent fee in 
connection with tax returns, claims for refund, or documents in 
connection with tax returns or claims for refund prepared on behalf of 
a taxpayer.
    (e) Public Database for Tax Return Preparers.--Not later than 1 
year after the date of the enactment of this Act, the Secretary of the 
Treasury, shall ensure that the name and identification number (as 
described in section 6109(a)(4) of the Internal Revenue Code of 1986) 
of any tax return preparer who satisfies the requirements under section 
330 of title 31, United States Code, is made publicly available through 
such measures as are determined appropriate by the Secretary, which may 
include the use of any publicly available database that has been 
established and operated by the Secretary on or before the date of the 
enactment of this Act.
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