Tax Preparer Regulation Reintroduced to Congress

What are the implications for Tax Professionals?

New Taxpayer Bill of Rights Introduced (Source: NATP)

On April 7, Congressman Becerra introduced his Taxpayer Bill of Rights Act H.R. 5716 in the House. This bill is the latest development in Congressional efforts to license tax return preparers.  It is significant in that it also represents the first time under this administration that the House of Representatives has introduced licensure legislation.  There is now a bill in both the House and the Senate.  You should know that NATP has been working with Congressman Becerra and his staff since last year, giving comments on the provisions proposed in this bill and representing the interests of all tax professionals whether licensed or unlicensed.  While we did not get consideration for all of our observations, we are gratified that a great many of our comments and concerns were addressed.  This bill allows the Treasury and the IRS wide latitude in its implementation. 

The Taxpayer Bill of Rights Act of 2008 contains a variety of provisions aimed at improving services for taxpayers, particularly those with low or moderate incomes. In addition to licensing, it would protect taxpayers from lenders of refund anticipation loans (RALs) who act unscrupulously.  The bill would also clarify taxpayer rights and obligations, establish a grant program for free tax preparation and representation clinics, and help provide access to financial institutions for low-income taxpayers without a bank account. 

We will continue to monitor this bill as well as S. 1219 in the Senate and report to you on their progress.  We will also continue to comment as we meet with Congressional leaders on a regular basis. 

H. R. 5716, The Taxpayer Bill of Rights Act, as well as the House of Representative’s prepared Fact Sheet summarizing the key provisions of the bill are available at the NATP website.