[Congressional Record Volume 164, Number 94 (Thursday, June 7, 2018)]
[Senate]
[Pages S3363-S3364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2519. Mr. NELSON submitted an amendment intended to be proposed by
him to the bill H.R. 5515, to authorize appropriations for fiscal year
2019 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end of subtitle F of title X, add the following:
SEC. 1066. TAX PREPARER FRAUD PROTECTION FOR SERVICEMEMBERS
AND DEPENDENTS.
(a) In General.--Chapter 49 of title 10, United States
Code, is amended by inserting after section 985 the following
new section:
``Sec. 986. Tax Preparer Fraud Protection for Servicemembers
and Dependents
``(a) In General.--A tax return preparer may not provide
tax return preparation services to a covered member or a
covered dependent unless such tax return preparer satisfies
the minimum standards established under subsection (b).
``(b) Minimum Standards.--The Secretary of Defense
(referred to in this section as the `Secretary') shall, in
consultation with the Secretary of Treasury, establish
minimum
[[Page S3364]]
standards to ensure any tax return preparer providing tax
return preparation services to a covered member or a covered
dependent has demonstrated--
``(1) good character;
``(2) the necessary qualifications to provide valuable
service to any person; and
``(3) the competency to properly advise and assist any
person in the preparation of their tax returns.
``(c) Referrals to Secretary of Treasury.--Pursuant to
subsection (d) of section 330 of title 31, United States
Code, the Secretary shall refer to the Secretary of the
Treasury any tax return preparer who, in connection with any
tax return preparation services to a covered member or a
covered dependent, the Secretary has reason to believe--
``(1) is incompetent;
``(2) is disreputable;
``(3) with intent to defraud, willfully and knowingly
misleads or threatens any person or prospective person whose
tax return, claim for refund, or document in connection with
a tax return or claim for refund, is being or may be
prepared; or
``(4) is in violation of the standards established under
this section.
``(d) Definitions.--For purposes of this section:
``(1) Claim for refund.--The term `claim for refund' has
the same meaning given such term under section 6696(e)(2) of
Internal Revenue Code of 1986.
``(2) Covered dependent.--The term `covered dependent'
means, with respect to a covered member--
``(A) such member's spouse;
``(B) such member's child (as defined in section 101(4) of
title 38, United States Code); or
``(C) an individual for whom such member provided more than
one-half of the individual's support for at least 180 days of
the preceding calendar year.
``(3) Covered member.--The term `covered member' means a
member of the armed forces who is--
``(A) on active duty under a call or order that does not
specify a period of 30 days or less; or
``(B) on active Guard and Reserve Duty.
``(4) Tax return.--The term `tax return' has the same
meaning given the term `return' under section 6696(e)(1) of
the Internal Revenue Code of 1986.
``(5) Tax return preparation services.--The term `tax
return preparation services' means any service that assists
in the preparation, furnishing, or reproduction of a tax
return or claim for refund in exchange for compensation.
``(6) Tax return preparer.--The term `tax return preparer'
has the same meaning given such term under section
7701(a)(36) of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--Section 330 of title 31, United
States Code, is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively, and
(2) by inserting after subsection (c) the following new
subsection:
``(d)(1) After notice and opportunity for a proceeding, the
Secretary may suspend or disbar from practice, or censure, a
tax return preparer who--
``(A) has been referred to the Secretary under subsection
(c) of section 986 of title 10, United States Code, and
``(B) the Secretary has determined--
``(i) is incompetent;
``(ii) is disreputable;
``(iii) with intent to defraud, willfully and knowingly
misleads or threatens any person or prospective person whose
tax return, claim for refund, or document in connection with
a tax return or claim for refund, is being or may be
prepared; or
``(iv) is in violation of the standards established under
such section.
``(2) In the case of a tax return preparer described in
paragraph (1), or in the case of a tax return preparer who
was acting on behalf of an employer or any firm or other
entity in connection with the conduct described in such
paragraph, rules similar to the rules under subsection (c)
relating to monetary penalties shall apply for purposes of
this subsection.
``(3) The terms `tax return preparer', `tax return', and
`claim for refund' shall have the same meaning given such
terms under subsection (d) of section 986 of title 10, United
States Code.''.
(c) Clerical Amendment.--The table of sections at the
beginning of chapter 49 of title 10, United States Code, is
amended by inserting after the item relating to section 985
the following new item:
``986. Tax Preparer Fraud Protection for Servicemembers and
Dependents.''.
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