Rep. Richmond Introduces Legislation to Combat Tax Preparer Fraud

Press Release

Today, Congressman Cedric Richmond (LA-02) introduced the Taxpayer Protection and Preparer Fraud Prevention Act of 2013, which implements and enforces policy that would allow the Internal Revenue Service (IRS) to certify paid tax preparers and ensure they are competent, of good character and able to render services.

"In these challenging economic times, the last thing hardworking Americans need is to be made vulnerable by a tax preparer that is unfit to do the job," said Rep. Richmond. "This common sense bill would provide the IRS with tools to ensure consumers are choosing from only the most competent pool of preparers when it is time to file their return."

The Taxpayer Protection and Preparer Fraud Prevention Act would also allow the IRS to create penalties for tax preparers who have been found to be disreputable, incompetent or fraudulent.

Key provisions of the legislation include:

Giving the IRS the authority to license or certify tax preparers
Requiring tax preparers to be competent, of good character and able to render services
Allowing penalties for tax preparers that have been found to be disreputable, incompetent or fraudulent
In January of 2013, the U.S. District Court for the District of Columbia ruled that the IRS did not have the authority to regulate paid tax preparers, removing key requirements such as compliance testing. This, in turn, left taxpayers vulnerable to possible dishonesty, negligence or fraud with little recourse.

"I am hopeful that my colleagues on both sides of the aisle can come together and recognize the need to institute basic IRS protections," said Rep. Richmond. "This bill is a long overdue step towards protecting average Americans who shouldn't have to worry about being defrauded."

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