H.R.1983 - Tax Return Preparer Accountability Act of 2025 (119th Congress)
Summary
H.R. 1983, the Tax Return Preparer Accountability Act of 2025, aims to amend Title 31 of the United States Code to regulate tax return preparers. The bill directs the Secretary of the Treasury to establish minimum competency standards, including examination, continuing education, and background checks. It also seeks to update technology at the IRS to identify taxpayers at risk of economic hardship and improve security standards for tax software.
Expected Effects
The bill's passage would lead to increased regulation and oversight of tax return preparers, potentially enhancing the accuracy and reliability of tax returns. The IRS would also implement new technologies to better assist taxpayers facing economic hardship. These changes could affect both tax professionals and individual taxpayers.
Potential Benefits
- Increased accountability and competence among tax return preparers.
- Reduced errors and fraud in tax preparation.
- Enhanced protection for taxpayers from incompetent or unethical preparers.
- Improved IRS identification of and assistance to taxpayers facing economic hardship.
- Stronger security standards for tax software, protecting taxpayer data.
Potential Disadvantages
- Increased compliance costs for tax return preparers, potentially leading to higher fees for taxpayers.
- Potential for smaller tax preparation businesses to be disproportionately affected by new regulations.
- Possible delays or complications in tax preparation due to new requirements.
- Increased administrative burden on the IRS to implement and enforce the new regulations.
- Potential for the definition of "economic hardship" to be interpreted narrowly, limiting the number of taxpayers who can benefit from the IRS's new technologies.
Constitutional Alignment
The bill's provisions related to taxation and regulation fall under the purview of Congress's power to lay and collect taxes, as outlined in Article I, Section 8, Clause 1 of the Constitution. The emphasis on due process in rescinding identifying numbers aligns with the Fifth Amendment. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).