H.R. 1983, the Tax Return Preparer Accountability Act of 2025, establishes federal regulation of tax return preparers by the Treasury Department for the first time. The bill requires tax return preparers to meet minimum competency standards, including obtaining an identification number, passing examinations and continuing education requirements, and completing background checks—though those already regulated by comparable state licensing programs would be exempt. The legislation also empowers the Treasury Department to sanction preparers who are incompetent or disreputable and to rescind their identification numbers if they fail to comply with tax administration requirements. Additionally, the bill directs the IRS to develop technology improvements, including an automated system to identify taxpayers at risk of economic hardship so they can receive information about available assistance, and requires the IRS to establish information security standards for tax software providers. The bill does not specify new funding amounts or implementation deadlines beyond "as soon as practicable."
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