H.R. 4184House117th Congress (2021-2023)In Committee

Taxpayer Protection and Preparer Proficiency Act of 2021

To set minimum standards for tax return preparers.

AI-Generated Summary

Updated February 8, 2026 at 4:58 AM UTC

The Taxpayer Protection and Preparer Proficiency Act of 2021 establishes minimum competency standards for individuals who prepare tax returns for others. It requires such preparers to obtain a Treasury‑issued identifying number, pass an exam, complete annual continuing‑education, and undergo a background check, while allowing exemptions for those already licensed by comparable state programs. The law also reinstates the Registered Tax Return Preparer Program and directs a GAO study on information sharing between the IRS and state tax authorities.

Key Provisions

Amends Treasury regulations to bring tax return preparers under the same regulatory framework as other Treasury representatives.
Requires every paid tax return preparer to obtain an identifying number, pass a basic income‑tax exam, complete up to 15 hours of annual continuing education, and undergo a background check.
Provides exemptions for preparers who already meet comparable state licensing, examination, education, and background‑check requirements.
Reinstates the Registered Tax Return Preparer Program with a one‑time basic exam and limited annual CE requirements.
Allows the Treasury Secretary to rescind a preparer’s identifying number after notice and hearing if the preparer is found incompetent or disreputable.
Mandates a GAO study, within 18 months, on federal‑state information sharing about preparer identification numbers and minimum standards.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 25, 2021

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HouseIntro Referral

Introduced in House

June 25, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 25, 2021

Floor Debate

1 member

What members said about H.R. 4184 on the floor

1 Democrat

Rep. Eleanor Holmes NortonD-DC · Apr 1, 2021

Madam Speaker, today, I introduce the District of Columbia National Guard Commanding General Residency Act, which would require the Commanding General of the D.C. National Guard to reside in the…

Madam Speaker, today, I introduce the District of Columbia National Guard Commanding General Residency Act, which would require the Commanding General of the D.C. National Guard to reside in the District of Columbia, just as States and territories can require that the top official of their National Guard reside within their State or territory.

The D.C. National Guard is a Federal entity. Currently, the Commanding General of the D.C. National Guard is not required to reside in the District. Congress has justifiably required that certain Federal officials reside in the jurisdiction they serve to ensure in-depth knowledge of the unique issues and challenges residents and these Federal officials face. Additionally, the Mayor of D.C., unlike the Governors of the States and territories, cannot deploy the National Guard, making residency of the Commanding General of the National Guard that much more important, though my District of Columbia National Guard Home Rule Act (H.R. 657) would give the Mayor the authority to deploy the D.C. National Guard. The appointment of the Commanding General of the D.C. National Guard is made by the President, not the Mayor, whereas the top official of the National Guards in the States and territories are usually appointed by the Governor. All of these are compelling reasons why the Commanding General of the D.C. Guard should be required to be a D.C. resident.

This bill follows in the footsteps of several other bills that I have introduced that would require Federal officials serving D.C. exclusively to reside in the District. For example, my District of Columbia Federal Officials Residency Equality Act (H.R. 3785, 116th Congress) would require the Federal district court judges, Federal circuit court judges, U.S. Attorneys and U.S. Marshals for the District to live in D.C. I have also previously introduced a bill (H.R. 4184, 116th Congress) that would require the Director of the Court Services and Offender Supervision Agency for the District of Columbia and the Director of the District of Columbia Pretrial Services Agency to reside in the District.

With the nomination of the current D.C. National Guard Commanding General, Major General William J. Walker, to be the House Sergeant at Arms, this bill is more timely than ever. Moreover, the attack of the U.S. Capitol on January 6, 2021, and the events at Lafayette Square on June 1, 2020, are prime examples of why this bill is so important. Residents of the District would feel at least somewhat more confident in the D.C. National Guard if the Commanding General were required to be a D.C. resident.

I urge my colleagues to support this bill.

Bill Text

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Introduced in HouseIssued June 25, 2021

117th CONGRESS

1st Session

H. R. 4184

IN THE HOUSE OF REPRESENTATIVES

June 25, 2021

Mr. Panetta (for himself and Mr. Rice of South Carolina) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To set minimum standards for tax return preparers.

Short title

This Act may be cited as the Taxpayer Protection and Preparer Proficiency Act of 2021.

Regulation of tax return preparers

(a)

In general

Subsection (a) of section 330 of title 31, United States Code, is amended—

(1)

by striking paragraph (1) and inserting the following:

(1)

regulate—

(A)

the practice of representatives of persons before the Department of the Treasury; and

(B)

the practice of tax return preparers; and

; and

(2)

in paragraph (2)—

(A)

by inserting or a tax return preparer to prepare tax returns after practice;

(B)

by inserting or tax return preparer before demonstrate; and

(C)

by inserting or in preparing their tax returns, claims for refund, or documents in connection with tax returns or claims for refund after cases in subparagraph (D).

(b)

Authority To sanction regulated tax return preparers

Subsection (c) of section 330 of title 31, United States Code, is amended—

(1)

by striking before the Department;

(2)

by inserting or tax return preparer after representative each place it appears; and

(3)

in paragraph (4), by striking misleads or threatens and all that follows and inserting

misleads or threatens—

(A)

any person being represented or any prospective person being represented; or

(B)

any person or prospective person whose tax return, claim for refund, or document in connection with a tax return or claim for refund, is being or may be prepared.

(c)

Minimum competency standards for tax return preparers

Section 330 of title 31, United States Code, is amended by adding at the end the following new subsection:

(f)

Tax return preparers

(1)

In general

Any tax return preparer shall demonstrate minimum competency standards under this subsection by—

(A)

obtaining an identifying number for securing proper identification of such preparer as described in section 6109(a)(4) of the Internal Revenue Code of 1986;

(B)

satisfying any examination and annual continuing education requirements as prescribed by the Secretary; and

(C)

completing a background check administered by the Secretary.

(2)

Exemption

The Secretary shall exempt tax return preparers who have been subject to comparable examination, continuing education requirements, and background checks administered by the Secretary or any comparable State licensing program. Such exemption shall extend directly to individuals who are supervised by such preparers and are not required to secure an identification number under section 6109(a)(4).

(3)

Reinstatement of Registered Tax Return Preparer Program

The Secretary shall issue regulations under this section reinstating the Registered Tax Return Preparer Program. Examination of tax return prepares under such program shall be limited to a one-time, basic individual income tax examination and the annual continuing education requirement under such program shall not exceed 15 hours.

(d)

Tax return preparer defined

Section 330 of title 31, United States Code, as amended by subsection (c), is amended by adding at the end the following new subsection:

(g)

Tax return preparer

For purposes of this section—

(1)

In general

The term tax return preparer has the meaning given such term under section 7701(a)(36) of the Internal Revenue Code of 1986.

(2)

Tax return

The term tax return has the meaning given to the term return under section 6696(e)(1) of the Internal Revenue Code of 1986.

(3)

Claim for refund

The term claim for refund has the meaning given such term under section 6696(e)(2) of such Code.

(e)

Amendments with respect to identifying number

(1)

In general

Section 6109(a) of the Internal Revenue Code of 1986 is amended by striking paragraph (4) and inserting the following:

(4)

Furnishing identifying number of tax return preparer

(A)

In general

Any return or claim for refund prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer, his employer, or both, as may be prescribed. For purposes of this paragraph, the terms return and claim for refund have the respective meanings given to such terms by section 6696(e).

(B)

Exception

Subparagraph (A) shall not apply with respect to the preparation of any return or claim for refund by a tax return preparer if—

(i)

such return or claim is prepared by such preparer while such preparer is employed by an attorney, certified public accountant, or enrolled agent firm, and

(ii)

such preparer prepares such return or claim under the supervision and direction of a tax return preparer who signs such return or claim and is an attorney, certified public accountant, or enrolled agent.

(2)

Clarification of rescission authority

Section 6109 of such Code is amended by inserting after subsection (d) the following new subsection:

(e)

Authority To rescind identifying number of tax return preparer

(1)

In general

The Secretary may rescind an identifying number issued under subsection (a)(4) if—

(A)

after notice and opportunity for a hearing, the preparer is shown to be incompetent or disreputable (as such terms are used in subsection (c) of section 330 of title 31, United States Code); and

(B)

rescinding the identifying number would promote compliance with the requirements of this title and effective tax administration.

(2)

Records

If an identifying number is rescinded under paragraph (1), the Secretary shall place in the file in the Office of the Director of Professional Responsibility the opinion of the Secretary with respect to the determination, including—

(A)

a statement of the facts and circumstances relating to the determination; and

(B)

the reasons for the rescission.

(f)

GAO study and report on the exchange of information between the IRS and State taxation authorities

(1)

In general

Not later than 18 months after the date of the enactment of this Act, the Comptroller General shall conduct a study and submit to Congress a report on the sharing of information between the Secretary of the Treasury and State authorities, as authorized under section 6103(d) of the Internal Revenue Code of 1986, regarding identification numbers issued to paid tax return preparers and return preparer minimum standards.

(2)

Increased information sharing

The study and report described in paragraph (1) shall include an analysis of the impact that increased information sharing between Federal and State authorities would have on efforts to enforce minimum standards on paid tax return preparers.