Protecting Taxpayers from Ghost Preparers

Full Title:
Protecting Taxpayers from Ghost Preparers Act

Summary#

This bill changes parts of the Internal Revenue Code to increase penalties and clarify timing rules for some tax return problems. It expands the legal definition of a “return” to cover not only tax returns but also certain adjustment requests, partnership tracking reports, and any other document that tries to act like those items. That expansion is written so tax return preparation penalties can apply when someone improperly alters those documents. The bill also changes the rule on how long the IRS can assess tax when fraud is involved: it inserts the words "by the taxpayer" after "intent," so the extended time limit for assessing tax applies only when the taxpayer had intent. Finally, the bill makes a technical change that renames a subsection in a disaster-related tax-deadline law. The bill sets effective dates: the definition change is effective on enactment, the limitation-period change applies to assessments or proceedings begun after enactment, and the technical change is treated as if it were included in the earlier disaster law.

What it means for you#

  • If you prepare or alter tax documents, the bill makes clear that certain altered documents are treated like returns, and preparer penalties can apply to those altered documents.
  • If your tax return was altered by a preparer without your intent, the bill directs that the special extended time for the IRS to assess tax does not automatically apply unless the taxpayer had intent.
  • The technical renaming of a subsection affects internal code wording; the text does not describe any direct change to taxpayer filing dates by itself.

Expenses#

No publicly available information on costs or budget effects is included in the bill text or provided metadata.

Proponents' View#

No publicly available information on proponents' statements or official arguments is included in the bill text or provided metadata.

Opponents' View#

No publicly available information on opponents' statements or official arguments is included in the bill text or provided metadata.