Bills · HR 1983
IN COMMITTEE· 119TH CONGRESS
House BillHR 1983Taxation
Tax Return Preparer Accountability Act of 2025
INTRO MAR 10· LAST ACTION MAR 10
READING
6MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses concerns about the quality and accountability of tax return preparers. Unlike other financial professionals, many tax preparers currently operate without federal oversight regarding their competency or ethics. If this bill becomes law, it could lead to more accurate tax filings, fewer instances of preparer fraud, and greater consumer protection for taxpayers who rely on these services.
It also updates how the IRS interacts with taxpayers facing financial struggles, potentially making the tax collection process fairer and less burdensome for those in hardship. Furthermore, in an age of increasing cyber threats, establishing security standards for tax software is crucial for protecting sensitive personal and financial data. If it doesn't pass, the current system of varied or limited federal oversight for preparers, less proactive IRS hardship identification, and voluntary software security measures would likely continue.
KEY PROVISIONS
5AI-extractedPROVISION 01
Directs the Secretary of the Treasury to regulate tax return preparers, not just representatives before the Department.
This expands federal oversight to all individuals who prepare taxes for compensation, not just those representing clients in disputes.
PROVISION 02
Requires most tax return preparers to meet minimum competency standards, including passing an examination, completing continuing education, and a background check.
This aims to ensure that tax preparers have the necessary knowledge and ethical standing to prepare accurate returns.
PROVISION 03
Grants the IRS authority to rescind a tax return preparer's identifying number (PTIN) if they are found to be incompetent or disreputable.
This provides a mechanism to remove unethical or unqualified preparers from the profession, protecting taxpayers.
PROVISION 04
Directs the IRS to implement technology to identify taxpayers at high risk of economic hardship and adjust collection treatments accordingly.
This would make the tax collection process more sensitive to individual financial circumstances and offer support to vulnerable taxpayers.
PROVISION 05
Requires the Treasury Secretary to establish and annually update information security standards for all tax software providers.
This is crucial for protecting sensitive taxpayer data from cyber threats and ensuring the integrity of tax filings.
SPONSORSHIP
1 + 1
D· Tennessee
YRS IN OFFICE
19
BILLS LED
58
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 1 REP 0 IND 0
ACTION TIMELINE
2 EVENTSMAR 10
Introduced in House
MAR 10
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 1983
Congress119th
StatusIn Committee
IntroducedMar 10, 2025
Last actionMar 10, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAR 10, 2025
House BillHR 1983Taxation
Tax Return Preparer Accountability Act of 2025
INTRODUCED MAR 10, 2025· LAST ACTION MAR 10, 2025
PASSAGE CHANCES
—%
READING
6 min
COSPONSORS
1
COMPLEXITY
Moderate
