[Congressional Record Volume 172, Number 49 (Wednesday, March 18, 2026)]
[Senate]
[Page S1266]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4537. Mr. WYDEN submitted an amendment intended to be proposed by
him to the bill S. 1383, to establish the Veterans Advisory Committee
on Equal Access, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
SEC. ___. REGULATION OF 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) the practice of tax return preparers; and'', and
(2) in paragraph (2)--
(A) by inserting ``or a tax return preparer to prepare tax
returns'' after ``practice'',
(B) by inserting ``or tax return preparer'' before
``demonstrate'', and
(C) 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) Authority To Sanction Regulated Tax Return Preparers.--
Subsection (c) 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 tax return,
claim for refund, or document in connection with a tax return
or claim for refund, is being or may be prepared.''.
(c) Minimum Competency Standards for Tax Return
Preparers.--Section 330 of title 31, United States Code, is
amended by adding at the end the following new subsection:
``(f) Tax Return Preparers.--
``(1) In general.--Any tax return preparer 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 any examination and annual continuing
education requirements as prescribed by the Secretary; and
``(C) completing a background check administered by the
Secretary.
``(2) Exemption.--The Secretary shall exempt tax return
preparers who have been subject to comparable examination,
continuing education requirements, and background checks
administered by the Secretary or any comparable State
licensing program. Such exemption shall extend directly to
individuals who are supervised by such preparers and are not
required to secure an identification number under section
6109(a)(4).''.
(d) Tax Return Preparer Defined.--Section 330 of title 31,
United States Code, as amended by subsection (c), is amended
by adding at the end the following new subsection:
``(g) Tax Return Preparer.--For purposes of this section--
``(1) In general.--The term `tax return preparer' has the
meaning given such term under section 7701(a)(36) of the
Internal Revenue Code of 1986.
``(2) Tax return.--The term `tax return' has the meaning
given to the term `return' under section 6696(e)(1) of the
Internal Revenue Code of 1986.
``(3) Claim for refund.--The term `claim for refund' has
the meaning given such term under section 6696(e)(2) of such
Code.''.
(e) Amendments With Respect to Identifying Number.--
(1) In general.--Section 6109(a) is amended by striking
paragraph (4) and inserting the following:
``(4) Furnishing identifying number of tax return
preparer.--
``(A) In general.--Any return or claim for refund prepared
by a tax return preparer shall bear such identifying number
for securing proper identification of such preparer, his
employer, or both, as may be prescribed. For purposes of this
paragraph, the terms `return' and `claim for refund' have the
respective meanings given to such terms by section 6696(e).
``(B) Exception.--Subparagraph (A) shall not apply to any
tax return preparer who prepares a return or claim for refund
under the supervision and direction of a tax return preparer
who signs the return or claim for refund and is a certified
public accountant, an attorney or enrolled agent.''.
(2) Clarification of rescission authority.--Section 6109 is
amended by inserting after subsection (d) the following new
subsection:
``(e) Authority to Rescind Identifying Number of Tax Return
Preparer.--
``(1) In general.--The Secretary may rescind an identifying
number issued under subsection (a)(4) if--
``(A) after notice and opportunity for a hearing, the
preparer is shown to be incompetent or disreputable (as such
terms are used in subsection (c) of section 330 of title 31,
United States Code), and
``(B) rescinding the identifying number would promote
compliance with the requirements of this title and effective
tax administration.
``(2) Records.--If an identifying number is rescinded under
paragraph (1), the Secretary shall place in the file in the
Office of the Director of Professional Responsibility the
opinion of the Secretary with respect to the determination,
including--
``(A) a statement of the facts and circumstances relating
to the determination, and
``(B) the reasons for the rescission.''.
(f) GAO Study and Report on the Exchange of Information
Between the IRS and State Taxation Authorities.--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Comptroller General shall
conduct a study and submit to Congress a report on the
sharing of information between the Secretary of the Treasury
and State authorities, as authorized under section 6103(d) of
the Internal Revenue Code of 1986, regarding identification
numbers issued to paid tax return preparers and return
preparer minimum standards.
(2) Increased information sharing.--The study and report
described in paragraph (1) shall include an analysis of the
impact that increased information sharing between Federal and
State authorities would have on efforts to enforce minimum
standards on paid tax return preparers.
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